Sumitomo Metals Seeks Better Technology Advantage

Sumitomo Metal Industries continues decided capital expenditure in fiscal 2011 started April while the firm holds expansion of steam generator tube for nuclear power plant, said the executive vice president Yasuyuki Tozaki. He said the firm checks new capital expenditure severely when the firm has to secure around 100 billion yen of fund for the recovery plan from damage by the major earthquake.

Mr. Tozaki said the firm secures more than 24 billion yen of research and development budget in fiscal 2011 as fiscal 2010. He emphasized the firm tries to improve the strong points and to accelerate the distinctiveness through the strategic R&D activity including development of automotive steel.

Mr. Tozaki said the firm allocates 70% of the R&D budget into development of products with balance for process innovation. He said automotive steel development represents around 50% of the products development budget while the budget share is around 30% for energy and around 10% for rail industry. The automotive steel development includes development of automotive flat steel and application technology, automotive steel pipe, crankshaft, steel bar at Sumitomo Metals (Kokura) and gaskets at Sumitomo Metals (Naoetsu). The firm also develops plate for offshore structures and penstocks, oil country tubular goods, line pipe and boiler tube while the firm develops wheels for high speed railway, axles for heavy burden train and train vehicle controlling technology for better ride quality.

Mr. Tozaki said the firm also tries to develop innovative process for next generation. The innovation includes new process to make rail vehicle, new forging technology, new seamless pipe mill, new process to make high tensile steel and new plate making technology. The group companies also try to make higher valued products including new wire rod at new production facilities at Sumitomo Metals (Kokura) while Sumitomo Metals (Naoetsu) launches new titanium scrap melting furnace in fiscal 2012.

Mr. Tozaki said the firm also improves iron making operation to reduce cost through lower reducing agent consumption and more use of lower grade raw materials. He said the firm also tries to develop steel making process to realize high quality and low cost while the firm develops next generation iron making process. The firm commercializes 3 dimensional hot bending and quench in fiscal 2011 through joint development with the group company of Sumitomo Pipe & Tube. The firm improves technical cooperation in the group company through technical consulting & machinery development project team launched in April 2010.

Mr. Tozaki said the firm improves the operation sustainability even in emergency case like the major earthquake. The firm checks all facilities at Wakayama works and Sumitomo Metals (Kokura) and alternative energy supply. He said the firm builds 2 coke gas holders with better safety at Kashima works while the firm checks stables supply of liquid natural gas for keeping temperature of hot stove instead of heavy oil at Sumitomo Metals (Kokura).