Metal One to Launch 2nd Coil Center in India

Japanese major steel trading company, Metal One Corporation announced on Monday the firm established joint coil center subsidiary in Manesar, Haryna of northern India with Suzuki Motor, Maruti Suzuki India and JFE Shoji Trade Corporation. The new center is Metal One’s second processing base in India while the new plant is the first base in India for JFE Shoji Trade. The joint processing company, Manesar Steel Processing (India) will start the operation at 13,000 tonnes per month in May 2011 to serve growing demand under the expansion by Maruti Suzuki.

Metal One, which has supplied steel sheet to Maruti Suzuki, builds 1.8 billion yen coil center with large slitter, large and small leveler shearing machines and 3 shearing machines to serve neighbor Maruti Suzuki’s plant in Manesar. Metal One controls 55% of the joint venture with 912 million yen of capital while Suzuki Motor has 20% share 20% in the venture with 15% share by Maruti Suzuki and 10% share by JFE Shoji Trade.

The automobile output in India is expected to increase to 4 million units in 2013 from 2.6 million units in 2009 due to increase in domestic shipment and export. Suzuki Motor is the largest automobile maker in India, which dominates about 50% share of Indian market. Maruti Suzuki plans to start the third plant in Manesar in 2013 to increase the production capacity to 1.5 million units per year while the firm recorded more than 1 million units of production in 2009.