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From Value One, Autumn 2009 No. 26 |
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Hangzhou Metal One Steel Plates Processing Co., Ltd.
First Metal One Overseas Steel Plate Melt Cutting Subsidiary
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Profitability Achieved in First Year of Plant Operations |
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Hangzhou Metal One Steel Plates Processing Co., Ltd. (HMOP) is Metal One's first overseas steel plate melt-cutting subsidiary. Established in March 2007, it began operations when the plant was completed in November of that year. The company manufactures and sells melt-cut plate products primarily to Hangzhou Kobelco Construction Machinery Co., Ltd., a manufacturer of hydraulic shovels in which Kobelco Construction Machinery and other firms have invested.
What sets HMOP apart is that, following initial cutting processes using NC gas melt-cutting machines or laser cutters, finished steel components are manufactured in secondary phase processes, such as edge preparation by machining centers or gas melt-cutting machines, pressing and roll bending, and robot welding. Moreover, by making the most of being present on customer's plant sites, the various parts that customers want can be loaded onto pallets and ready to be moved by forklift and delivered alongside customers' lines.
Thanks to China's flourishing demand for construction equipment and customers' expanded manufacturing output, HMOP was able to achieve single-year profits in FY2008, its first year of plant operations.
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| HMOP Head Office |
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| Processing inside the plant |
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"Heaven Above, Suzhou and Hangzhou Below" |
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Hangzhou was one of China's eight ancient capital cities. Famous from days gone by as one of China's most scenic places—as extolled in the saying "heaven above, Suzhou and Hangzhou below" (in heaven, there is paradise; on Earth, there is Suzhou and Hangzhou)—
West Lake, located on the west side of the city's central area and surrounded on three sides by mountains, is a particularly lovely and famous tourist spot. The surrounding area has many Buddhist and Taoist temples, villas, and gardens. In another part of the city, the Qiantang River, which flows through Zhejiang Province and is famous for its tidal bore, flows past the development zone where HMOP is situated, winding around it.
Hangzhou leapt into sudden prominence on July 22 of this year as a spot for viewing a total eclipse of the sun, and all HMOP employees observed the eclipse together.
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| Lovely West Lake scenery |
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| Total solar eclipse at Hangzhou |
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Best National Staff in the World |
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We hired national staff for the pivotal Human Resources & General Affairs, Finance, and Business Departments immediately after establishing the company. Along with the urgent task of hiring trainees (plant workers) who would be sent to Japan, we steadily took on national staff. A second Japanese employee on loan from Japan took up the post of vice president and factory manager in October of that year.
Our kind-hearted and talented national staff, whom we are confident are the best in not just China but also the world, constantly support the few Japanese staff on loan in terms of operations, of course, and with respect to our unfamiliarity with life in China. The vice president temporarily returned to Japan for surgery this spring and was met at the airport by more than 10 national staff volunteers when he returned to Hangzhou three weeks later. I was as overwhelmed by emotion as the vice president was when he accepted a bouquet that was presented to him in congratulations for his recovery.
Japanese and national staff mutually trust and respect each other and cooperate together for the benefit of HMOP's development, and our days are fulfilling. We await your visit.
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Chinese Steel Industry Issues |
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Most of the plates that HMOP purchases are made by Chinese mills, primarily Baosteel Group Corporation and the Jiangsu Shagang Group, and a portion is imported from Kobe Steel, Ltd. The quality of the plates manufactured by Chinese mills has improved markedly in recent years, and the results are generally good aside from certain issues concerning flatness and surface scale. Distribution, however—particularly product handling—is proving to be a headache. The problem of products being bent and scratched by the rough handling of distribution companies is unending. When plates are delivered, they arrive dented by pebbles and gravel; sometimes, they even have straw and weeds stuck to them. This is why even plates imported from Japan are bent and scratched while being off-loaded from ships and transported within China. Naturally, steel manufacturers issue instructions and requests to distribution companies, but they are slow to make improvements. This is a source of concern to Japanese customers and, I think, will be an issue for Chinese steel manufacturers from now on.
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