Nippon Steel & Sumikin Stainless Steel (NSSC) tries to increase the high valued products sales to secure the profitability. The firm also improves the cost structure to improve the competitiveness. The president Hiroshi Kinoshita said the firm eyes potential alliance with other makers including offshore players for potential investment in offshore integrated stainless plant and raw materials. With support by stronger parent company, NSSC seeks growth strategy in global stainless market.
Mr. Kinoshita said Japanese stainless demand would slow for fiscal 2012 starting April as recent years. He expects offshore plate demand would improve for duplex products while the plate demand is slow for the first half. He said the sheet export business is still tough due to high yen rate despite of the firm demand. Mr. Kinoshita said the rebuilding demand is small for each year due to the major part of the building construction demand would take years while some of the demand would be created for liquid petroleum gas station and freezer warehouse. Mr. Kinoshita emphasizes stainless is promising material with high performance in workability and corrosion resistance. Despite of the advantage of the material, he said stainless makers’ business is tough due to speculators’ activity both in nickel market and stainless products distribution market. He said NSSC focuses on higher valued products including FW series without nickel and duplex to avoid the speculators’ impact. Mr. Kinoshita said NSSC also tries to reduce cost in operations, cheaper raw materials use and better inventory balance, which contribute to better cash flow. He said the effort would provide better options for the company amid rapid changing market conditions. Mr. Kinoshita said the firm welcomes new combined company of Nisshin Steel and Nippon Metal Industry as a step to improve Japanese stainless industry. He said Japanese stainless industry is still small when world major stainless makers would expand the annual production to 5 million tonnes level. Mr. Kinoshita said the merger of parent companies of Nippon Steel and Sumitomo Metal Industry would provide better resource for NSSC. He expects NSSC seeks future growth with support in research and development, raw materials and offshore business from the combined parent company.
