Akiyama Seiko to Optimize Domestic Cold-Finished Bar Processes

Japanese major cold-finished steel bar maker, Akiyama Seiko will terminate the grinding process for small diameter bar at plant in Tokyo at the end of March 2013 and transfer the related facilities and functions to plant in Ibaraki in April 2013. The firm will integrate its domestic grinding process into plant in Ibaraki and improve the productivity.

The firm plans to start construction of a new factory to transfer the process inside site of plant in Ibaraki in July. The construction is expected to finish within this year. The new factory of the site will be approximately 4,500 square meters, 25-30% larger than the existent building for better working environment and more effective layout.

Akiyama Seiko started the operation at plant in Tokyo in 1935. The plant currently covers the grinding process of special steel bars with 5 millimeters or less diameter. Plant in Ibaraki was established in 1976. The plant currently produces steel bar products at around 1,000 tonnes per month and covers about 60% of Akiyama Seiko’s domestic output volume.

The other domestic plant in Saitama covers the drawing process while the plant also works as the distribution base with the product inventories. Akiyama Seiko plans to keep Saitama plant’s operations unchanged and optimizes domestic manufacturing operations into Ibaraki and Saitama sites.

Akiyma Seiko projects approximately 350 million yen of capex for domestic productive bases in fiscal 2012 started in April. For the offshore affiliates, the firm plans total 100 million yen capex to introduce additional grinding machines and non-destructive testing machines at two sites in Vietnam and China.

Vietnamese plant presently enjoys higher shipment for automotive component makers. The monthly output is reaching 300 tonnes. The plant is expected to achieve the monthly black ink in 2012. Chinese plant’s recent output is 220-230 tonnes per month with potential increase.