Nippon Steel to increase its capacity at NBC China
Nippon Steel Corporation, with respect to Nippon Steel Bar & CH Wire (China) Co Limited, a company manufacturing and selling steel wire for cold heading in China, has reached the decision, together with Matsubishi Metal Industry Co Limited, Miyazaki Seiko Co Limited, Sanyu Co Limited, Toyota Tsusho Corporation, Metal One Corporation and Nippon Steel Trading Co Limited, which are joint capital subscribers in NBC China, to increase its productive capacity and substantially expand the local fabrication setup.
NBC China, founded in 2006 and operated in 2007, underpinned by the growth of auto production in China, is now running at full capacity, with the existing capacity of 7,000 tonnes per year.
Capacity increase of NBC China this time is intended to accurately respond to the continuing growth of wire for cold heading in China, while enhancing its competitiveness in the aspects of quality, cost and delivery. With the construction of a new integrated plant having the pickling, wire drawing, and heat treating equipment, the company’s productive capacity will come to 42,000 tonnes per year.
Wire for cold heading are used as materials for automotive bolts, bearings and other important safety preservation parts, of which the exercise of rigorous quality control in material quality, dimensional accuracy and others is required. In this field, Nippon will be further strengthening its quality improvement and development capabilities, integrated from wire rod through to secondary fabricated products, in an effort to be appropriately responsive to customer needs.
Outline of the capacity increase investment:
1. Amount of investment: JPY 2,750 million
2. Contents of investment: pickling & film application line, heat treating furnace, and 3 units of wire drawing equipment (added to the existing 2 units, to a total of 5 units)
3. Productive capacity: 42,000 tonnes per year
4. Location: In the neighborhood of the existing plant (Suzhou City, Jiangsu Province, China)
5. Start of operation of the new plant: March 2013
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