Wednesday, October 2, 2013
Nisshin Steel To Make Specialty Steel For Autoparts In China
TOKYO (Nikkei)--Nisshin Steel Holdings Co. (5413) said Tuesday it plans to set up a joint venture in China to produce high-strength specialty steel products for the auto industry.
A total investment of 248 million dollars, or roughly 24 billion yen, will be required to form the Zhejiang Province venture.
A new company owned 55% by subsidiary Nisshin Steel Co., 35% by steel trading company Marubeni-Itochu Steel Inc., and 10% by U.S. specialty steel maker Worthington Industries Inc., will be established in December.
By the end of 2015, Zhejiang Nisshin Worthington Precision Specialty Steel Co. will begin manufacturing cold-rolled steel products with a high carbon content featuring enhanced strength and greater wear resistance in amounts of 120,000 tons a year.
Up until now, Nisshin Steel has used three factories in Japan to supply these specialty steel products to China. With a factory near customers, it can respond more flexibly to changes in demand.
The plan is for the new joint venture to make finished products using semi-finished steel supplied from Nisshin Steel's Kure Works in Hiroshima Prefecture. But the venture might also procure materials from other sources if demand warrants.
(The Nikkei, Oct. 2 morning edition)