Sumitomo Metal Industries accelerates technology transfer to Standard Steel, American railway wheel and wheel axis maker. Sumitomo Metals provides upstream technology such for high cleanliness steel or downstream technology such as rotary forging process for molded wheels. Sumitomo Metals completed acquisition of Standard Steel in August 2011 and targets to raise its group share mainly in high-end railway wheel market, eyeing participation in U.S. high-speed railway projects. Sumitomo Metals utilizes 2 production bases in Japan and the U.S.A. and follows global growth of rail market.
Standard Steel has over 200 years of history and the top maker of railway wheel and wheel axis in the U.S.A. Sumitomo Metals purchased 90% shares in Standard Steel at total US$ 340 million. The rest 10% is held by Sumitomo Corporation. Sumitomo Metals is the world top railway wheel and wheel axis maker, mainly supplying high-end products to Japanese high-speed railway, Deutshe Bundesbahn’s ICE and other major projects. Sumitomo Metals now aims to enhance its presence in North America, the largest market in the world. World railway wheel market is 5 million wheels per year. American market is about 1.25 million wheels mainly for foundry pieces while the demand is currently increasing for forge steels with high permanence. Standard Steel produces forge steel wheel and wheel axis with output capacity at 300,000 wheels per year and 90,000 pieces per year. Sumitomo Metals plans to increase the sales of heavy wheel with high damage resistance and shifts production to Standard Steel by technical transfer. In America, there are many high-speed railway projects. Sumitomo Metals installs vacuum degassing furnace and rotary forging process for molded wheel, SIRD Press, and builds up local supply system of high quality wheels. Sumitomo Metals has production capacity of wheels at 240,000 wheels per year and 20,000 pieces in Japan. The production was 170,000 wheels and exported 80,000 wheels in fiscal 2010 ended in March 2011. The export accounted for 90% to the U.S.A.
