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Introduction of Group Companies
From Value One, Winter 2016 No.51
Our Strengths and Distinctive Qualities
Holds the largest share in Japan's stainless steel scrap market
Has yards at three western Japan sites
Takes over Metal One's stainless steel scrap trading function in eastern Japan
The vast yard at the Yamaguchi Branch

Japan's Biggest Dedicated Stainless Steel Scrap Wholesaler

Metal One Stainless Raw Materials Corporation operates the biggest stainless steel scrap business in Japan. The company was spun off from the stainless steel raw material division of predecessor Sus-Tech Corporation and others in 1987.

Making stainless steel requires expensive rare metals such as chromium and nickel. Stainless steel is almost 100 percent recyclable, so scrap holds an important position among raw materials. At present, about three million tonnes of stainless steel are produced annually in Japan, and scrap is estimated to account for about half of the raw material on the market.

Metal One Stainless Raw Materials is Japan's biggest dealer in this material, currently handling some eighty thousand tonnes a year. The company has yards in three sites in western Japan, including those at the Yamaguchi Branch and Kyushu Sales Office as well as one at its headquarters. The facilities handle a full range of stainless steel scrap business, from material collection to sorting, processing and delivery.

A particular strength of the company lies in the location of its yards in Yamaguchi Prefecture—the biggest stainless steel production center in Japan—where Nippon Steel & Sumikin Stainless Steel Corporation (Hikari Works) and Nisshin Steel Co., Ltd. (Shunan Works) have production facilities. This advantage enables the company to deliver goods just in time, having a steady volume of scraps ready for their furnaces.

President Satoshi Fukuda emphasizes this geographical advantage. "It is rare for a trading company to have its own yards for processing stainless steel scraps. The advantages that our agility and quality management knowhow give us, gained by handling real materials, are immense."

Handling the trading function of stainless steel scrap in eastern Japan area—something that Metal One headquarters was previously responsible for—was transferred to the company last year, making nationwide development of its activities possible.

"Eastern Japan is the greatest source of scrap in the country," says President Fukuda. "We would like to concentrate the knowhow we have accumulated over many years to develop new markets and increase the volume of scrap we collect. Our target for 2020 in this respect is 100,000 tonnes."

If the stainless steel products that Metal One handles can be considered "downstream" items, what Metal One Stainless Raw Materials deals in can be likened to the "upstream" sector. The latter constitutes a key link in the Metal One Group's "stainless steel value chain." Metal One Stainless Raw Materials intends to strengthen its ties with other stainless steel dealers in the group, including Sus-Tech, to make another leap forward.

 


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