Hitachi Metals Establishes Piston Ring Plant in China

Hitachi Metals announced on Tuesday the firm establishes stainless piston ring plant for automobile engine in Suzhou, China. The demand is expanding for high strength stainless piston ring when Chinese automobile output is increasing and needs of performance advances are increasing for environment in China. The investment is around 2 billion yen. New plant starts mass production on January 2011, and aims the sales at 2 billion yen in fiscal 2015. Hitachi Metals builds up 2 plants in Japan and China, and expands the production capacity, and enhances services of delivery time and technology and secures growing Asian market.

Hitachi Metals is to maker of stainless piston ring, which has production share at 50% in the world, and produces at Yasugi works in Shimane prefecture, Japan. New plant in China rolls and is treated with heat of steel products from Yasugi works.

The demand for piston ring is expanding when Hitachi Metals’ piston ring receives good recognition f0r quality and performance as environmental acceptability for small-large car. Yasugi plant’s sales is at 6 billion yen in fiscal 2010. Chinese car production is over 13 million cats in 2009 and is expected to increase to 16 million cars in 2010, and to more expand in the future. Consequently, Hitachi Metals advance the investment as automobile component business in growing market.. Hitachi Metals runs up target, Global 50, in mid-term plan until fiscal 2012, and builds back up sales and production system in offshore market.