Sumitomo Pipe & Tube Expands Production Capacity in China

Sumitomo Pipe & Tube, Japanese major steel pipe maker, announced on Wednesday the firm decided to double the production capacity of Guangzhou You-Ri Automotive Parts (GYA) in Guangzhou, China. GYA will introduce no.2 productive line for mechanical steel tubes with the investment at approximately 600 million yen. No.2 line will start commercial operation in May 2011. The production capacity will reach about 3,000 tonnes per month. Sumitomo Pipe & Tube aims to strengthen the position in Chinese mechanical steel tube market, mainly targeting Japanese automakers’ plants in the country.

Sumitomo Pipe & Tube forecasted the supply of mechanical steel tube would become tight after 2011 when automobile output is rapidly increasing in China. No.2 productive line will manufacture mechanical steel tubes with maximum 1.5 inches external diameter and 6 millimeters thickness. The line’s capacity will be around 1,500 tonnes per month. GYA will also introduce 2 cutting machines in March 2010 and additional 2 cutting machines soon.

Sumitomo Pipe & Tube holds 51% shares in GYA. Sumitomo Corporation holds 34% shares and Nippon Steel 15%. GYA was established in January 2005 and supplies electric resistance welded mechanical steel tubes for automobiles to Japanese component makers. The firm now operates one productive line and 5 cutting machines.