Metal One Corporation (headquartered in Minato-ku, Tokyo; President: Moriji Kanada) will capitalize on a new venture in Suzhou, Jiangsu Province, China in September. The new company will be launched by Nippon Steel Corporation with Matsubishi Metal Industry Co., Ltd., Miyazaki Seiko Co., Ltd. and Sanyu Co., Ltd. It will be provisionally named Nippon Steel Bar & CH Wire (China) Co., Ltd. and will handle specialty steel wire rods as a secondary processing company. Other trading companies such as Toyota Tsusho Corporation and Nippon Steel Trading Co., Ltd. will also capitalize on the new venture.
The new company will be capitalized at ¥170 million. Nippon Steel will own 28%, Matsubishi Metal Industry, Miyazaki Seiko and Sanyu Co., Ltd. 14% each, Toyota Tsusho 12%, and Metal One and Nippon Steel Trading 9% each. From the beginning of 2007, the company will begin manufacturing and selling CHQ (cold heading quality) steel wire used for fabricating automotive bolts and nuts. Two wire drawing machines will be installed in the plant and an annual production capacity of 7,000 tonnes is projected.
Exports from Japan currently account for most cold headed and cold forged parts such as automotive nuts and bolts. However, production volume in China is expected to rise as Japanese car manufacturers increase their production there. The establishment of the new company will enable the implementation of a supply system with a quality and delivery service superior to those of wire exports from Japan. The goal of the system is to respond to the diversifying needs of Japanese car part makers and other customers as they continue to increase on-site production.
| <For supplementary reference>
Outline of Nippon Steel Bar & CH Wire (China) Co., Ltd.
||Nippon Steel Bar & CH Wire (China) Co., Ltd.
||Suzhou, Jiangsu Province, China
||Nippon Steel (28%), Matsubishi Metal Industry (14%), Miyazaki Seiko (14%), Sanyu (14%),
Metal One (9%), Toyota Tsusho (12%), Nippon Steel Trading (9%)
||Start of operation:
||September 2006 (planned)
||Approx. 7,000 tonnes/year