Daido-Special Metals Promotes Import under Strong Yen Trend

Daido-Special Metals, a fifty-fifty joint company between Daido Steel and Special Metals Corporation of the U.S.A. to nickel alloy steels, tries to increase sales of exported products, imported products and new products in 2011. As for export of Daido Steel’s products, Daido-Special Metals plans to establish new supply chain of the parent company’s semi-finished products to overseas rolling and processing companies. The firm tries to cancel negative impact of strong yen trend by appealing Daido Steel’s high competitiveness in upstream operation.

Meanwhile, Daido-Special Metals takes advantages of strong yen trend in order to increase sales of Special Metals Corporation’s imported products. Daido-Special Metals also tries to promote import sales of Precision Castparts Corp’s products such as large-size forged products or large-diameter pipes. Precision Castparts Corp is a parent company of Special Metals Corporation.

Daido-Special Metals posted annual recurring profit of 259 million yen in 2010, improving from recurring loss at 116 million yen in 2009. The sales volume increased by 18% to 6,800 tonnes in 2010 from 2009. The profitability improved thanks to cost reduction efforts and resolution of paper loss. However, the sales volume was 27% lower than the pre-shock level in 2008. The net sales increased by 15% to 16.7 billion yen.