Sandvik to Triple Cemented Carbide Insert Output in Japan

Sandvik K.K., Japanese subsidiary of Sandvik AB in Sweden which is the world largest cutting tool maker, will triple its output capacity for cemented carbide inserts at Semine plant in Miyagi Prefecture, Japan. Sandvik K.K., headed in Kobe City, Hyogo Prefecture, Japan, plans to establish a new factory next to Semine plant and start operation in 2009 with capital expenditure of approximately 10 billion yen. The firm aims to cover strong demand for cemented carbide inserts from automobile and airplane industries mainly in Asia.Sandvik K.K. mainly produces cemented carbide inserts for metal cutting at Semine plant. The firm has expanded output capacity of Semine plant gradually in order to meet the rapid demand growth in both domestic and offshore markets. The firm decided the construction of a new factory in Semine when the demand for cemented carbide inserts continues increasing globally. The construction will start in 2008 and the output capacity will be tripled compared with current capacity of Semine.Sandvik K.K. produces and sells special steels and heat resistant alloys as well as cemented carbide tools. The firm posted net sales of 24.912 million yen in 2006, up by 9.5% from 2005, and recurring profit of 1.95 million yen.