Nippon Welding Rod Digs New Market of Special Steel Welding Materials

Tokyo based special steel welding materials maker, Nippon Welding Rod aims to cultivate new markets related to energy, food and water industries as well as the firm enhances its good presence in atomic power plant market more. The firm eyes order volume increase in close cooperation with sales and procurement affiliate partners.

The firm recently increased expert staffs for quality control unit in Hamakita factory, Shizuoka Prefecture, Japan, to enhance competitiveness for atomic power plant market. Atomic power plant constructions are expected to increase in and after the second half of 2011. Nippon Welding Rod’s products are used for atomic power plants worldwide. The sales and profits are expected to represent year-on-year growth in a full fiscal year ended February 2011.

The firm estimates Japanese demand for stainless steel welding rod including export was approximately 900 tonnes per month in 2010 against average 1,000 tonnes per month before Lehman Shock. The demand slowed down in the second half of 2010. The firm expects for the volume upturn in the second half of 2011.

The firm recently enlarged the sales affiliate partners area cover to Osaka and Nagoya in addition to Tokyo in order to cultivate new application markets. As for research and development, the firm introduced new production facilities in Hamakita factory with several hundred million yen capex to commercialize hybrid welding wire developed with Japanese government’s subsidy.

The firm also tries to reduce negative impact of strong yen trend by increasing US dollar or euro based export. Export currently accounts for 20-30% in the firm’s total sales. Export of special welding rod maintains steady mainly for China, India and Southeast Asia.