Nippon Steel Eyes Early Start of BNA’s New Galvanizing Line

Nippon Steel’s president Shoji Muneoka said the firm tries to start operation of no.3 continuous galvanizing line at the joint venture, Baosteel-NSC/Arcelor Automotive Steel Sheet (BNA) in Shanghai in February 2010, which is ahead of original schedule in spring 2010. He indicates at the interview with Japanese reporters in Beijing during World Steel Association’s annual conference the firm and the partners study further expansion including the no.4 line depending on Chinese automobile demand.

Mr. Muneoka said Nippon Steel expects Chinese automobile market will be the world largest market in 2009 topping US market when Chinese automobile production keeps more than 1 million units per month. He said BNA and Baosteel Group try to keep more than 50% share in Chinese market for high grade flat steel of automotive outer panel by expanding the capacity depending on the demand.

Mr. Muneoka said the firm tries to follow growing demand in China through the tinplate joint venture in Guangzhou while the firm tries to serve various Chinese steel demand including high speed railway, earthquake resistance building and structure and energy industry. He indicates the firm could cooperate with other Chinese steel makers in future than Baosteel Group.

The firm targeted annual 40 million tonnes plus alpha of production capacity to become global player. Mr. Muneoka said the target is farer than before due to worldwide recession but the firm still eyes the target in future. He said the firm tries to follow the growing demand in BRICs and East Asia. He said the firm studies timing for major expansion at Usiminas while the firm keeps studying for integrated steel plan in Thailand and some automotive related business in India.