Nippon Steel Trading to Launch First Fabricating Plant in China

Nippon Steel Trading launches wholly owned blanking plant in Shanghai for around 1.5 billion yen to serve automobile industry, announced on Tuesday. Nippon Steel Trading starts the firms’ first steel fabricating business for automobile. The new subsidiary targets to accept the order from American and European automobile related makers such as General Motors. Nippon Steel Trading plans to establish the new subsidiary in May and starts the operation with one continuous blanking line in March 2011. The firm establishes the new plant in Jiading, Shanghai, where many automobile related makers operate.

Chinese automobile output is estimated to increase by about 15% to 16 million units in 2010 from 2009 and the output could reach 20 million units in 2012. Nippon Steel Trading plans to cultivate automobile related market in China by launching the blanking plant.