Nippon Steel Engineering to Increase CGL Sales in Southeast Asia

Nippon Steel Engineering, a subsidiary of Nippon Steel, plans to increase order acceptances for continuous galvanizing lines (CGLs) and other steel plant facilities in Southeast Asia and to raise the overseas sales rate, except for the sales to Nippon Steel, to 50% in 2015. Nippon Steel Engineering is bidding for CGL construction project by SSSC in Vietnam, which might be the first order receipt for the company in Southeast Asia. Nippon Steel Engineering even eyes establishment of a sales office in Vietnam as well as staff increase at another office in India. The company also sent off three staffs to Singapore for marketing research last week.

Nippon Steel Engineering targets CGLs of “the volume zone” in balance of price and CGL type. The firm is preparing for approximately 20 CGL construction projects. Price competitions are tough in “the volume zone” for simple type CGLs. The firm aims to increase the business profit by technical approaches such for coating weight or steel sheet flatness.

In India, the firm succeeded in an order acceptance for a coke dry quench (CDQ) from Bhushan Steel, India’s major steel maker, at around 3 billion yen. This is the sixth order receipt for CDQ in India. The firm’s current sales rate for steel plant is 50% in Japan, 20-30% for Nippon Steel’s overseas projects and 20-30% for the other steel makers’ overseas projects.