Steel Plantech Aims Order Receipt Higher than 50B Yen in F2010

Steel Plantech (SPCO), Japanese major steel making machinery maker, aims to expand order receipts to more than 50 billion yen in fiscal 2010 ending in March 2011 from 22 billion yen in fiscal 2009. SPCO tries to follow overseas demand for steel making equipment. The firm plans to increase annual sales to 40 billion yen with Return on Sales of 5% in fiscal 2010.

SPCO announced on Wednesday the firm accepted an order for pickling-tandem cold rolling mills and an annealing and coating line for electric steel sheet from China Steel Sumikin Vietnam Joint Stock Company (CSVC), a joint company between China Steel of Taiwan and Sumitomo Metal Industries of Japan. These equipments will start operation at the end of December 2012. The order value is approximately 11 billion yen. SPCO accepted an order for pickling-tandem cold rolling mills for the first time.

SPCO’s order receipts decreased by 33% to approximately 22 billion yen in fiscal 2009 from fiscal 2008. Meanwhile, the annual sales reached 50 billion yen with recurring profit of several billion yen thanks to equipment delivery for large projects.

In fiscal 2010, large steel making project in abroad is starting. SPCO aims to increase order acceptances from overseas users. The order receipt ratio from overseas is expected to exceed 90% in value. The firm plans to establish a sales base in Vietnam within fiscal 2010 as well as in India and Brazil. The firm also strengthens the business in China.