Nippon Steel to Expand CH Wire Production Capacity in China

Nippon Steel announced on Thursday Nippon Steel Bar & CH Wire (Suzhou), the subsidiary to manufacture steel wire for cold header in China, expands the production capacity by 6 times to 42,000 tonnes per year in 2015. The subsidiary called NBC China will raise the capacity to approximately 24,000 tonnes per year in March 2013 and continue the capacity expansion step by step. The total investment is 2.75 billion yen. NBC China meets local demand for CH steel wire when Japanese automobile makers are expanding production capacities in China and increasing local material procurement.

NBC China will construct a new factory near the existing factory, transferring 2 drawing machines to the new factory from the old factory and newly installing 3 drawing machines, a pickling line and 2 heat treated furnaces in the new factory. NBC China purchases wire rod from Muroran iron works of Nippon Steel.

CH wire is used for important security parts of automobiles such as bolts, screws nuts or bearings. High grade material and high dimension accuracy are required for the parts. NBC China’s technical superiority is higher than local wire makers. NBC China responds to increasing demand and requests for high quality products. NBC China also eyes CH wire supply to non-Japanese users.

NBC China was established in 2006 which started operation in 2007. The production capacity is 7,000 tonnes per year. The plant maintains full operation since 2010.