Suzuki Metal Industry Increases Capacity of Steel Wire Works for Automobile in China

Suzuki Metal Industry, Japanese largest special steel wire maker, introduces 2 steel wire drawing lines with the investment at over 300 million yen for valve spring in Suzhou province, China, which increases production capacity to 10,000 tonnes per year from 6,000 tonnes for expanding car production in mainly China. The firm starts the operation of the new lines in the half of 2011, and started the purchase of the lines.

The firm bought Garphyttan, Swedish steel wire maker, in June 2009, and started enhancement of capacity for Garhyttan’s works in Suzhou and increased the capacity by 50% in spring 2010. Chinese automobile output is expected to increase to 18 million cars from 13.8 million cars in 2010 from 2009. Because consumers are changing wants to high grade car from low price car, the demand for Japanese and European car is expected to expand in the future.

Suzuki Metal Industry became world largest valve spring maker wit the share of 40% by acquisition of Garphyttan which has production bases in Suzhou, Sweden and USA. Suzuki Metal’s accomplishment is expanding by recovery of car sales in USA and of export from Europe. The Sozhou works is only plant for steel wire for valve spring, which was established in 2006, and buys wire rod from mainly Kobe Steel and POSCO.