Nippon Steel’s Seamless Pipe to Exceed 85,000t at Tokyo Works

Nippon Steel’s Tokyo works expects the production of seamless steel pipe at over 85,000 tonnes through fiscal 2006 ending March 2007, which would exceed 85,000 tonnes for the first time since fiscal 1996 when the demand is active such for construction and industrial machinery. The works tries to reduce intermediate inventory at the works and the users when the works increases order accepting frequency from once per month to 3 times per month and improves the accuracy for order accepting volume after October 2006. The works tries to keep steady operation by expansion of through put for hot-rolling and cold-rolling processes to meet users’ demand.

Tokyo works supplies about 90% of the seamless steel pipe output for domestic users, which can correspond for small lot orders and short lead time. The works is building up the productivity to meet strong demand under continuous full operation. The works achieved 43,200 tonnes of output in the first half of fiscal 2006, which exceeded the plan. The works plans 43,600 tonnes in the last half of fiscal 2006. The production would be over 80,000 tonnes per year for 2 consecutive years.

The works will reduce the inventory to 12,000 tonnes at the end of March 2007 from 16,700 tonnes in August 2003. The works also aims to reduce lead time from order acceptance to shipment to less than a month for common products.