Sumikin Bussan Expands Offshore Steel Business

Sumikin Bussan, large dealer subsidiary of Sumitomo metal Industries expands offshore business. The firm established precision cut component makers in Thailand and starts operation in autumn. The firm invested head rest component makers in USA in January. The firm increases production of both makers and extents these same business to Asia. In Vietnam, the firm invested to cold rolling mill which is established by Japanese major steel maker, Sumitomo Metal Industries and Taiwanese major steel maker, China Steel, and to coil centers of China Steel. The firm makes a response to request f users for purchase from local and secure the demand in developing countries.

The firm plans to invest at 10 billion yen in fiscal 2010 at ended March 2011 and increases by 3.8 billion yen from fiscal 2009. The firm will build up domestic business base, and invests offshore business and enhances profit power.

The firm established Miyaki SB Precision Thailand which produces automobile and OA component in Thailand on June 2009. Because automobile output is high pace with 1.6 million cars per year, users are ordering to Miyaki SB Precision. In USA, Sumikin Bussan merged JR Manufacturing which is head rest component maker. JRM ships to Japanese automobile makers and recovers operation rate to 70-80% from peal level in 2008. Sumikin Bussan expands the business of component production bases to other area.

In Vietnam, the firm got share of 5% of cold rolling mill and of 13% of coil center. The firm enhances Ho-Chi-Min office and increases users until 2012 when cold rolling mill starts operation. The firm established local company for sales in April in India and increases trade steel products, non-ferrous products and other material. The firm business base in Pusan business base in January 2010 and secures steel demand for plant construction. The firm set up Asia steel sheet division in April, and integrated domestic and offshore trade of sheet. The firm expands steel business in Asia by unique division. The firm raises export ratio from 13% against standalone sales and builds up offshore business bases.