Nisshin Steel to Optimize Color Coating Operation in Chiba

Nisshin Steel decided to stop the wholly owned subsidiary, Nisshin A&C’s color coating line at Yachiyo plant in Chiba. Nisshin Steel consolidates the production into the Ichikawa plant in Chiba by April 2011. The firm tries to improve the color coating operation rate of the group in eastern Japan. The Ichikawa plant, which starts production of hot-dipped zinc-aluminium-magnesium-alloy-coated steel, ZAM in 2011, improves the integrated operation from mother plate to processed products.

Nisshin Steel stops an old color coating line and 2 siding making lines at Yachiyo plant of Nisshin A&C. Nisshin Steel focuses the color coating operation in eastern Japan into 2 lines at Ichikawa while the firm operates a line at Sakai plant in Osaka.

The firm transfers production and knowhow from Yachiyo plant to Ichikawa and Sakai plants to improve the competitiveness. Nisshin Steel and Nisshin A&C improve the cooperation when they sell the 55% aluminium-galvanizing flat steel, SELiOS jointly while Nisshin A&C makes processed products of SELiOS and ZAM made by Nisshin Steel.

Nisshin Steel launched a task force in May to improve products development and marketing of construction materials. The firm studies optimum production network for the products. The consolidation is a part of the strategy to improve the competitiveness.

Sheet steel processed construction materials makers try to reorganize the production bases under decreasing demand structure. JFE Galvanizing & Coating closed Matsudo plant in Chiba to consolidate the production into Keihin plant in Kanagawa. Nippon Steel & Sumikin Coated Sheet and Hokkai Koki also closed part of the plating and coating lines.