Takasago Tekko Withdraws from Stainless Cold Rolling

Takasago Tekko announced on Friday the firm withdraws from stainless cold rolling business by end of 2009. The firm reduces around 1.4 billion yen per year of fixed cost by removing 2 cold rolling mills, continuous annealing and pickling facilities, continuous bright annealing facilities and related facilities. The firm reduces around 70 of employees by early retirement and transferring to group companies. The firm focuses the resources on surface treated products including embossment, polishing, plating and high precision pipe and precise processing products while the firm purchases cold rolled products from third parties. The firm also tries to get order for charge processing for surface treatment and precise processing.

The firm tries to restructure the stainless business for 1.7 billion yen. The firm scraps some loss making business and focuses on the remaining businesses. The firm transfers the cold finishing steel making process from Ojima plant in Tokyo to Itabashi plant in Tokyo in 2009, which is earlier than original plan in February 2010, to seek synergy by integrating with stainless business. The firm sells the Ojima plant to Nippon Steel City Produce in December 2009.

The firm reinforces the surface treatment business with the existing sendzimir mill and skin pass mill facilities. The firm is launching new stainless plating line in June 2009 to expand the business with the expertise under growing demand for lithium ion battery.