Sumitomo Metals to Launch X100 Grade Line Pipe in F2010

Sumitomo Metal Industries announced on Thursday the firm will start commercial production of ultra high strength line pipe in fiscal 2010 ending March 2011 after 10 billion yen of expansion at Kashima works. With the investment, the firm can produce the grade with more than X100, which represents strength that doesn’t deform under a force of up to 70 kilogram per square millimeter of internal pressure. The firm tries to shift to high valued products for large diameter welded pipe by expanding the advantage in energy applications. The firm targets the high strength products represent 95% of total sales for large diameter welded pipe in fiscal 2011. The firm expands refining capacity at melt shop, capacity of online accelerated cooling facility at plate mill and expanding capacity of large diameter UOE pipe mill. The firm expands the high strength line pipe while the firm shifts to high valued products for the material of plate. The firm starts the construction in fiscal 2009 finishing in fiscal 2010. The firm can produce X100 grade high strength line pipe in commercial base after that. Line pipe demand is expected to keep growing when natural gas demand expands worldwide with higher needs for clean energy. Oil majors try to improve cost structure and transport efficiency by increasing strength of line pipe. Pipe suppliers try to improve the products to meet the high pressure transport with thinner and smaller gauge. Sumitomo Metals tries to increase the strength of the pipe products to meet such needs. The firm plans to operate the large diameter welded pipe facility at full capacity and produces 430,000 tonne in fiscal 2006 and 500,000 tonnes in fiscal 2008.