Steel Plantech Progresses Large Cost Down to Survive Global Competition

Steel Plantech, Japanese major supplier of steel making facilities, has accelerated cost reduction and technology improvement in fiscal 2011 (April 2011-March 2012) to meet technological and cost requirements from overseas steel makers in Asia, Middle East and South America. Steel Plantech has tried to seek simple specs especially for pig iron making process and electric furnace process in order to provide new products with high cost competitiveness in fiscal 2012.

Steel Plantech has also tried to increase utilization of local component procurement at overseas through establishment of offshore subsidiaries and conclusion of strategic business partnership. The current utilization rate is above 30%. The firm has entered business partnership with Shanghai Heavy Machinery in December 2010. This scheme now contributes to acceleration of cold rolling mill sales and production in China. Mr. Yoshiyuki Fujiwara, president of Steel Plantech, said the firm will provide technologies to Shanghai Heavy Machinery, an important strategic partner.

Steel Plantech has also established a local company in Brazil while plans to establish a local company in India. Mr. Fujiwara indicated the firm needs to realize 50-70% productive cost down in order to contest with overseas steel making machine suppliers.