Mazda to Shift to Hot-Dip Galvanizing Steel for 2007 Model

Mazda Motor Corporation will shift from electro-galvanizing steel to hot-dip galvanizing steel for the automotive outer panels from 2007 models after the firm decided the shift last year. The firm purchases estimated more than 30,000 tonnes per month of the steels as the procurement of its own from Nippon Steel, JFE Steel and Sumitomo Metal Industries. With the higher demand, Nippon Steel will start operation of the new continuous galvanizing line with 360,000 tonnes of annual output capacity at Hirohata works in December 2006 while JFE Steel will starts the new no.6 CGL with 600,000 tonnes of capacity at Fukuyama in January 2007 and Sumitomo Metals starts the new CGL with 300,000 tonnes of capacity at Kashima works in November 2006. Japanese automakers will use only hot-dip galvanizing steel for the corrosion resistant flat steel when Daihatsu Motor, which still uses some electro-galvanizing steel, shifts to hot-dip galvanizing steel completely as early as in 2006. Mazda purchases averaged 60,000 tonnes per month of flat steel as the central purchasing. The firm buys 30,000 tonnes of corrosion resistance flat steel, of which main part is electro-galvanizing steel, and the firm purchases the 60% from Nippon Steel and the 40% from Sumitomo Metals. The firm decided to shift to hot-dip galvanizing steel to secure materials stably when worldwide automakers shift to hot-dip galvanizing steel. The firm selected Nippon Steel, JFE Steel and Sumitomo Metals through the competition for the suppliers. Mazda already started the shift for the new sport utility vehicle in 2006. The firm is shifting to hot-dip galvanizing steel gradually in the year and uses only hot-dip galvanizing for 2007 models. Under the shift, the 3 steel makers establish stable supply ability by commissioning new lines.