Nippon Koshuha Steel Eyes 50B Yen Sales as Next 10 Year Goal

Nippon Koshuha Steel, Kobe Steel’s subsidiary and Japanese major special steel maker, projects consolidated net sales growth to 50 billion yen per annum 10 years later, increasing by about 25% compared with 39.6 billion yen of estimation in fiscal 2010 ended in March 2011. The firm targets sales expansion in emerging countries through business cooperation with local steel processors while accelerates new product development for new market cultivation. The firm also tries to shorten delivery lead time. The firm plans total 4 billion yen strategic capex in next 3 years.

The firm aims to raise the export sales rate to 20% in fiscal 2012 and 30% 10 years later from present 14%. The firm seeks capital tie-up with local secondary processors in China, Thailand, Vietnam and India to increase order receipts from Japanese makers’ offshore sites. At the same time, the firm gives technical training to offshore sales staffs in order to improve technical services for special steel users.

The firm recently upgraded the new product development team to the business unit and increased the staff number to 14 from previous 12. The firm is presently in cooperative R&D with Kobe Steel for high-lubricity coating technology to extend mold life used in automotive industry.

Production of the firm’s main plant, Toyama works in Toyama Prefecture, Japan, was estimated as yearly 100,000 tonnes in fiscal 2010, producing special steel alloy and secondarily processing bearing steel. The firm tries to shorten Toyama works’ delivery lead time by 30% until fiscal 2015 by conversion of production control and order receiving systems.

Nippon Koshuha Steel estimates annual consolidated net sales at 39.6 billion yen with recurring profit at 800 million yen for fiscal 2010. The firm plans total 6 billion yen capex in a medium term, 4 billion yen for growth strategy including operative optimization and 2 billion yen for renewal of old facilities.