Sumitomo Metals to Reinforce High-Grade Steels Technology and Production

Yasuyuki Tozaki, vice president of Sumitomo Metal Industries, explained the firm’s technology strategy to Japan Metal Bulletin. Sumitomo Metals’ basic stance of research and development (R&D) is to increase the sales ratio of differentiated products for better profitability along its 3-year management plan to fiscal 2008 ending March 2009, he said. He pointed out the firm should advance high-grade products more when overseas makers such as China and South Korea accelerate their technology development. Mr. Tozaki explained Sumitomo Metals planned to increase the R&D investment to 17.5 billion yen during 3 years to fiscal 2008 from 14.5 billion yen during the previous 3 years and the number of researcher employee to 300 from 250.Sumitomo Metals plans 480 billion yen of capital investment during fiscal 2006-2008, including the renewal of upstream operations at Wakayama works. The firm is now relining no.3 blast furnace at Kashima works and will start the operation in May 2007 instead of no.2 blast furnace. The firm could build stable production system of crude steel at 8 million tonnes per year with more than 5,000 cubic meters of each capacity for existent no.1 and new no.3 blast furnaces.He explained that new hot-dip galvanizing lines would start the operation at the end of 2006 and new continuous pickling lines in autumn 2007 at Kashima works, both of which are for automobile steel sheet. These new facilities are the part of the expansion strategy for high-grade steel products. The firm would also complete the enhancement of the heating furnace for high-grade steel plate at the end of 2007. The steel plate production capacity could increase to 2 million tonnes per year from 1.9 million tonnes at present.At Wakayama works the firm would complete output capacity expansion of finishing turning lines for seamless steel pipe in summer 2008, increasing the capacity to 1.2 million tonnes per year from 1.1 million tonnes at present. The inner capacity of no.1 blast furnace would be expanded to 3,700 cubic meters from current 2,700 cubic meters.