JFE Container, Japanese major container maker, raises production volume of steel drum to 150,000 pieces per month of full capacity toward November-December 2010 at JFE Steel Drum Zhejiang, a subsidiary in China. Steel drum production will reach 250,000 pieces per month including JFE Steel Drum Zhejiang and JFE Steel Drum Shanghai, another subsidiary. Japanese chemical makers are increasing output capacities in Shanghai chemical industry estate. JFE Container also examines introduction of a new production line in JFE Steel Drum Zhejiang as well as construction of a new plant in Jiangsu.
The current production is 120,000-130,000 drums per month in Zhejiang and 100,000 drums in Shanghai. JFE Container eyes local production of unique products such as high tensile drums and cost reduction by increasing local steel sheet procurement. Thin wall drums are preferred in Chinese market and major users are interested in high tensile steel drums for even thinner walls. JFE Steel Drum Jiangsu will hold a groundbreaking ceremony in July, construct a factory building within this year and start facility introduction in spring 2011. The production will start in 2012.Japan Steel Scrap Composite Prices (Sangyo Press)
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