Suzuki Metal Industry to Build up Output Capacity of Special Steel Wire

Japanese major maker of special steel wire, Suzuki Metal Industry plans over 3 billion yen of investment during its 3-year management plan to fiscal 2008 ending March 2009. The firm invests for reinforcement of the productive equipment, development of new products and the integration of stainless steel wire business with Sumitomo (SEI) Steel Wire Corp. Suzuki Metal Industry will utilize 1.4 billion yen of increased capital by Nippon Steel, the parent company, as a part of 3 billion yen. Suzuki Metal Industry also plans to expand the output capacity for automobile engine valve spring and suspension spring by each 300 tonnes per month, to meet active demand for the products. Total output capacity of the firm is currently 8,000 tonnes per month.High-strength suspension spring is expected to be adopted by automobile makers, which Suzuki Metal Industry developed with Nippon Steel and produces in Muroran plant. On the other hand, the production is short against the demand at present and Suzuki Metal Industry needs to build up the output capacity.Along the 3-year management plan, Suzuki Metal Industry also aims to acquire overseas demand more, when Japanese automakers are expanding the production of finished cars or knock down sets at overseas. Chinese subsidiary of Sumitomo (SEI) Steel Wire in Guangzhou will become to the subsidiary of the integrated company of stainless steel wire, for which Suzuki Metal Industry will have 60% share. The subsidiary could contribute to the overseas demand acquirement.Noboru Sugiura, president of Suzuki Metal Industry, said the firm needed to advance the overseas businesses for the growth. In the future the firm may examine to advance toward Asia where auto production is increasing or the U.S.A. where Japanese auto export is active. Suzuki Metal Industry plans to work out the growth strategy actively keeping close cooperation with Nippon Steel.