Nisshin Steel to Refresh Steel Making Process in Shunan Works

Nisshin Steel announced on Tuesday the firm refreshes stainless steel making facilities in Shunan works, Yamaguchi, Japan. The firm plans to raise capacities of converters and vacuum degassing chambers while to install a new continuous casting line which can process slabs with maximum 5 feet width. The investment will total approximately 27 billion yen. By this conversion, the output capacity will increase by 16% to 800,000 tonnes per year while Nippon Metal Industry’s Kinuura works will terminate steel making since the companies integrate in October 2012. The new facilities will start operation in 2H 2014. Nisshin Steel tries to maximize productivity and integrating synergy by concentration of steel making process into Shunan works.

Nisshin Steel started operation of existing steel converters, vacuum degassing furnaces and a continuous casting line in Shunan works over 40 years ago. One electric furnace entered operation in 1990 and the other electric furnace in 2003. By the refreshment, the works can reduce productive costs, improve quality of stainless steel products and supply larger stainless steel coils. Most investment seems to be allocated to the new continuous casting line. The works will also integrate Nippon Metal Industry’s unique stainless products and seek synergies such for technical development, sales and profits.

Shunan works becomes able to produce a stainless steel coil of maximum 30 tonne weight, increasing from present 20 tonnes. The new continuous casting line allows production of wider slabs with maximum 5 feet width, which enables full capacity utilization of the existing cold rolling mill. Kinuura works also has a rolling mill to process 5-feet width slabs. Both companies can utilize their rolling mills fully. Shunan works’ cold rolling capacity is 60,000 tonnes per month. Refreshment of upstream processes contributes to much higher productivity of downstream processes.