Ohtani Kakoh Starts Stainless Plate Processing in Suzhou

Kanagawa headed stainless steel processor and dealer, Ohtani Kakoh started operation of the new stainless steel processing base in Suzhou, China on Thursday. The site would enter mass operation after mid 2012. The revenue target is 400 million yen with annual processing volume at 1,000 tonnes in the first fiscal year. The firm plans to increase processing volume to 1,500 tonnes in next fiscal year and 3,600 tonnes several years later.

Ohtani Kakoh made the full-scale advance at offshore countries as Japanese stainless steel plate processor. Ohtani Kakoh’s wholly-owned subsidiary in Singapore acquired a stainless steel sheet processing factory in Suzhou from Metal One Corporation, Japanese major steel trading house, in autumn of 2011. Ohtani Kakoh introduced new processing facilities such as plasma cutting machines and started operation of the site this month.

The firm has already launched trading since February mainly for transplants Japanese enterprises in such industrial fields as electronics, telecom, industrial machinery, plant facility, food and medical supply. A large-lot shipment to a customer related to industrial machine industry is scheduled in May.

The site is located inside Suzhou Industrial Park. The capital fund is US$ 6 million. Ohtani Kakoh concluded a partnership with Jiangsu Daming Metal Products, Chinese largest stainless steel dealer with 60,000 tonnes of monthly processing capacity. Ohtani Kakoh provides technical supports to Jiangsu Daming Metal Products and supplies high quality products to local customers.

Ohtani Kakoh plans to expand sales activity as a major wholesaler of flat stainless steels as well as stainless steel pipes, long products and nonferrous metal products.