Metal One to Increase China Steel Sales by 1 Million tonnes

Japanese major steel trading firm, Metal One opens steel processing sites in China. The firm will complete 2 coil centers construction in Hunan and Jiangxi autumn 2011. The firm also launches construction material processing center in Wuhan in June-July. The coil center in Guangdong builds second plant by August and the plate processing center in Suzhou also builds new plant to start can making and painting operation. Metal One tries to improve the steel processing capacity and menu to serve transplant of Japanese companies and local users. Through the series of the investment, the firm targets annual 5 million tonnes steel sales in China under new mid-term plant starting fiscal 2012 ending March 2013 compared with current 4 million tonnes.

Metal One’s coil center in Hunan will deal Chinese makers’ flat rolled steel for Chinese users to develop Chinese demand. The another coil center in Jiangxi will deal both local makers’ flat rolled steel and imported steel from Japan to supply steel for local home electronics makers including Japanese transplants.

Metal One’s Wuhan based construction material processing joint venture with China’s largest dealer, Minmetals Steel will start commercial operation of built-H-beam making autumn 2011. The joint venture targets more than 100,000 tonnes of annual steel sales by developing the construction market.

Metal One’s Foshan, Guandong based coil center doubles production capacity in July-August to meet growing demand from Japanese automakers’ transplants. The Suzhou based hydraulic shovel cabin making firm expands the plant by December to start downstream operation for adjacent Caterpillar’s plant.

Metal One has 5 local subsidiaries and 20 investment affiliates in China. The total sales of Chinese businesses increased from 170 billion yen in 2009 to more than targeted 200 billion yen in 2010. The equity method income increased by 50% from Chinese operations. The steel selling volume increased to around 4 million tonnes from 3.1 million tonnes.

Metal one is increasing its steel sales for Chinese users in cooperation with local dealers. The firm concluded partnership with Shandong Iron and Steel Group in 2010. Metal One aims to increase steel sales not only for Japanese users but also Chinese users to develop the Chinese market.