Maruichi Steel Tube Starts to SUNSCO Expansion in September 2012

Maruichi Steel Tube’s Vietnamese subsidiary, Sun Steel Joint Stock Company (SUNSCO) starts construction work of No.2 continuous galvanizing line (CGL) and No.2 color coating line (CCL) in September 2012 to start operation in March 2013 for CCL and in June 2013 for CGL. The firm tries to expand the production to meet growing construction demand in Vietnam and Southeast Asia when the firm operates No.1 CGL and No.1 CCL at full capacity.

The firm starts production of hot-dip galvanizing steel (GI) along with 55% aluminium and zinc coated flat steel at No.2 CGL while the firm makes only 55% Al-Zn coated steel at No.1 CGL. The firm uses the GI as material for the pipe making line. After the expansion, the production increases by 75% to monthly 35,000 tonnes including 20,000 tonnes of flat steel and 15,000 tonnes of steel pipe.

The plant located in Binh Duong province has a pickling line, a cold rolling mill, No.1 CGL and No.1 CCL. The pipe making line includes a mill with 16 inches, 7 carbon steel pipe mills and 11 stainless pipe mills. The plant also has coil processing facility and pipe processing facility.

The plant started the operation of 16 inches pipe mill in June 2010 and got American Petroleum Institute certification in September 2011 for the mill. The plant makes monthly total 20,000 tonnes of products including around 15,000 tonnes of flat steel and around 5,000 tonnes of pipe. The plant operates the CGL at full capacity to make monthly more than 10,000 tonnes products to serve construction demand in Vietnam and Southeast Asia.

The firm tries to follow growing construction demand in Asia. Maruichi Steel Tube decided to add No.2 CGL and No.2 CCL in May 2011 to follow the demand.

The US$ 90 million expansion work is to build steel structural new 2 plant buildings with total 32,426 square meters of floor space completing in March 2012. The works is to set Mitsubishi-Hitachi Metals Machinery’s CGL and Chigai Ro’s CCL.

No.2 CGL can make monthly around 20,000 tonnes of products with 4 feet width and 0.3-3.2 millimeters thick while No.1 CGL can make sheet with 0.2-0.7 mm thick. No.2 CCL can make around 8,000 tonnes of products with 4 feet width and 0.2-1.2 mm width while No.1 CCL can make products with 0.2-0.7 mm thick.