Sumitomo Metals to Expand High Grade Seamless Pipe Sales in F2008

Sumitomo Metal Industries will increase the selling volume of high grade seamless steel pipe, including super high alloy steel oil well tubular, 13% chrome oil well tubular and corrosion resistance alloy steel oil well tubular, to total 200,000 tonnes in fiscal 2008 ending March 2009, up by 33% from fiscal 2006. The firm aims to expand the sales by 33% to 20,000 tonnes for super high alloy steel oil well tubular in fiscal 2008 form fiscal 2006, by more than 10% to 100,000 tonnes for 13% chrome oil well tubular and by 77% to 80,000 tonnes for corrosion resistance alloy steel oil well tubular. Sumitomo Metals plans the investment of total 35 billion yen for expansion of seamless steel pipe business during fiscal 2006-2008. The firm already launched capital expenditure for capacity expansion of super high alloy oil well tubular and 13% chrome oil well tubular. The firm will increase the production capacity of seamless steel pipe to total 1.24 million tonnes per year. The firm enjoys favorable sales of seamless steel pipe and expects the sales added up to approximately 1.15 million tonnes in fiscal 2006 when the demand was strong for energy industry mainly in Brazil, Russia, India and China and super oil majors developed oil and natural gas actively on the long visions. Users request higher grade seamless steel pipe because their developments tend to be constructed under hard conditions, for example, very cold or deep in ocean.