Neturen America to Start Steel Wire Supply in April 2008

Neturen, Japanese maker of steel wire for spring, announced on Tuesday the outline of its joint company in USA established in January 2007 to produce and sell high strength steel wire for cold formed spring (ITW). The JV is named Neturen America Corporation and the capital stock is US$ 12 million, 55% controlled by Neturen, 35% by Metal One, Japanese major steel business house, and 10% by Nippon Steel Corporation. Neturen sends the representative person for the JV. Neturen America constructs its plant in Hamilton, Ohio, and will start the operation in April 2008. Neturen produces ITW by induction heating method. The firm decided to establish the JV in USA when Japanese automobile makers expand their production in USA and demand local supply of steel wire. In addition the automakers are expected to use ITW substitute for steel wire for hot formed spring. Neturen America gained the land of 40,000 square meters in Ohio to construct the factory building with floor space of 7,500 square meters. The plant will start operation in April 2008 with 20-30 employees. The JV aims 10,000 tonnes sales per year in fiscal 2010 ending March 2009. Nippon Steel will supply the wire rod from Japan. Neturen expects a synergy from Neturen’s technology, Metal One’s business fundamentals in USA and Nippon Steel’s development power for high strength steel products and supply power for the material.