Nippon Steel Materials to Start Metal Catalyst Carrier Plant in China

Nippon Steel Materials, which is a 100% subsidiary of Nippon Steel mainly to make electronic parts, doubles output capacity of metal catalyst carriers for motorcycles. Nippon Steel Materials established a productive site with an initial output capacity at 80,000-90,000 units per month in Hangzhou of Zhejiang Region, China starting commercial shipment to Japanese automakers at the end of 2008. The firm invests total 90 million yen for the site. The firm plans to raise the output capacity in China to more than 100,000 units per month with expectation for the demand growth.Nippon Steel Materials established Hangzhou site to manufacture metal catalyst carriers in November 2007. The capital is US$ 600,000 wholly invested by Nippon Steel Materials. Nippon Steel Materials will supply stainless steel foil from Japan, the material for metal catalyst carrier, and fabricate it at Hangzhou site. The firm expects initial annual sales at 500-600 million yen in Hangzhou.Japan, USA and EU started adoption of European emission control standard, “EURO3,” for motorcycles. China will start to adopt EURO3 in July 2009. Nippon Steel Materials will produce metal catalyst carriers and increase the sales in China. The firm aims to sell the products to local customers in future as well as Japanese automakers.Nippon Steel Materials’ production of metal catalyst carriers for motorcycles will reach 160,000-180,000 tonnes as a total of Japanese and Chinese sites. In Japan, the firm produces metal catalyst carriers in Nagoya plant at 80,000-90,000 units per month for motorcycles and at 50,000 units per months for four-wheel cars.