BNA Eyes Full Capacity Operation in Mid-2010

Baosteel-NSC/Arcelor Automotive Steel Sheets (BNA), which is Shanghai based joint venture of Baoshan iron & Steel, Nippon Steel and Arcelor Mittal, targets full capacity operation for no.3 continuous galvanizing line in mid-2010 after the commissioning in February 2010. BNA and Baosteel try to secure more than 50% share in Chinese automotive cold rolled flat steel and galvanizing steel market through the no.3 line with 450,000 tonnes of annual production capacity.

BNA constructs the no.3 line for 25 billion yen to make hot-dip galvannealed steel for automobile application to serve growing Chinese market. The firm tries to start the no.3 continuous galvanizing line operation in February 2010, which is earlier than original plan in April. The firm gets automakers’ approval as early as possible to ramp up the production to full capacity level in around 3 months.

Chinese automobile market reached 9.34 million units in 2008 from 7.28 million units in 2006 and 8.88 million units in 2007. The sales keep 1-1.1 million units since March 2009 despite of worldwide slump. Chinese automobile market is estimated to exceed 12 million units in 2009 when the volume apparently reached 1.36 million units in September.

BNA kept full capacity operation at 1.82 million tonnes in 2007 and 1.75 million tonnes in 2008 after 1.16 million tonnes in 2005 and 1.79 million tonnes in 1.79 million tonnes in 2006. The firm increases the shipment for automotive application, which represents 80-90% of the shipment. The firm supplies around 3 million tonnes per year of automotive cold rolled and galvanizing steel in Chinese market with around 6 million tonnes.

Baosteel has 50% interest in BNA with 38% share by Nippon Steel and 12% share by Arcelor Mittal. BNA started the operation in April 2005. The firm has a continuous descaling and cold rolling mill with annual 1.76 million tonnes of output, a continuous annealing and processing line with 900,000 tonnes of , no.1 continuous galvanizing line with 450,000 tonnes of capacity and no.2 continuous galvanizing line with 350,000 tonnes of capacity.