Hitachi Metals to Expand Offshore Network

Hitachi Metals expands production and sales network in emerging countries to clear 50% of offshore sales rate targeted under 3-year plan through fiscal 2012 ending March 2013. The president Hiroyuki Fujii said the firm expands the production where the market expands. The firm increases the capital expenditure by 40% to 28 billion yen in fiscal 2011 from fiscal 2010 to expand production bases in China and Thailand and sales bases India for more sales of the products including automotive parts. The firm seeks growth through wider offshore activity by improving the customer service and better cost position under higher yen rate.

The firm expands the sales of high grade products including cut core to meet growing demand in China, India, Thailand, Indonesia and Vietnam. The firm also follows growing demand for high grade steel products in emerging countries. The firm improves the offshore business base to meet demand for local procurement and better local technical service by the users

The firm eyes merger and acquisition along with offshore business expansion. The firm targets 30% of offshore production rate by 2015 compared with 23% in fiscal 2010.

The firm expands the business in the world No.1 automobile making country of China. The firm’s piston ring making plant in Jiangsu, which is under construction since 2010, starts sample shipment in autumn. The firm’s sputtering target material making plant in Jiangsu starts mass production and triples the production in 2013. The steel rolling roll making joint venture in Jiangsu increases the output capacity by 30% in 2015.

The firm produces ferrite core in Thailand with growing automobile demand. The firm also makes precise casting products for industrial machinery, amorphous cut core for solar power inverter and piping parts. The firm completes the plant building in March to start operation in October ahead of the original schedule.

The firm tries to expand the sales of special steel products, rolling roll and automobile parts in India. The firm tries to develop the high grade steel products market in the country when the demand grows for lighter weight vehicle.

The firm targets 600 billion yen of annual sales and 50% of offshore sales rate under 3-year plan through fiscal 2012. The sales were 520.2 billion yen in fiscal 2010 while the offshore sales rate increased by 0.5 points to 43.2%.