Sumitomo Metals’ Wakayama Works Increases High Quality Steel Tube

Wakayama iron works of Sumitomo Metal Industries takes advantage of state-of-the-art facilities and technologies to survive global competition era. The works will start operation of no.2 blast furnace in the last half of fiscal 2012 ending in March 2013. The works’ core facilities including blast furnaces, steel making and seamless steel tube mills will become most advanced. The top manager of the works, Mr. Takahisa Miyake said the works’ crude steel output is expected to increase by 500,000 tonnes or more to approximately 4.4 million tonnes in fiscal 2010 compared with fiscal 2009. Slab production is estimated to increase by 200,000 tonnes to approximately 2.8 million tonnes, supplied to China Steel (CSC) of Taiwan, Nippon Steel and Kobe Steel. Seamless pipe production is planned to increase by 100,000 tonnes to approximately 900,000 tonnes.

Mr. Miyake explained Wakayama works’ crude steel output was 3.87 million tonnes in fiscal 2009 and slab production increased by 500,000 tonnes to 2.6 million tonnes compared with the previous financial year. Crude steel volume didn’t decrease widely because the works stably supplies slabs for CSC, Nippon Steel and Kobe Steel. Meanwhile, seamless pipe production decreased by 300,000 tonnes to 800,000 tonnes and steel sheet production declined by 200,000 tonnes to 600,000 tonnes.

Mr. Miyake said the works’ export ratio currently exceeds 60% since the works exports slabs to CSC at 1.8 million tonnes per year and ships seamless tubes mainly to overseas. In fiscal 2010, slab supply for Nippon Steel and Kobe Steel is expected to reach 1 million tonnes while the supply for CSC would keep the same volume as in fiscal 2009.

By completion of no.2 blast furnace, the works’ crude steel output capacity will expand by 700,000 tonnes to 5.2 million tonnes per year. Mr. Miyake said the works enhances its state-of-the-art technology and knowhow to compete with overseas steel makers. He explained the works increases production of high quality steel tubes since the seamless pipe joint venture with Vallourec Group will start operation in Brazil this autumn mainly for common grade products. Wakayama works becomes to cover high end tubes and SG steel tubes for atomic power plants or dual alloy products, transferred from Amagasaki works.

As to steel sheets, Mr. Miyake said the works aims to increase high grade cold rolled sheets including magnetic sheets for electric vehicles and hybrid vehicles, and high carbon sheets for sheet belts.