Mitsubishi Steel Commissions Semi-Finished Steel Production in Indonesia

Mitsubishi Steel Mfg, Japanese major special steel maker, announced on Thursday the firm concluded a technical assistance agreement with Jatim Taman Steel, Indonesian electric furnace steel maker, for semi-finished steel production for spring steel flat bar. Mitsubishi Steel commissions semi-finished steel production to Jatim. Jatim supplies semi-finished steel to Indospring, Indonesian major spring maker. Mitsubishi Steel enhances cost competitiveness to meet steel users’ local procurement demand. This is the first offshore productive commission of semi-finished steel for Mitsubishi Steel. The firm plans to allocate domestically produced semi-finished steel to other users.

Mitsubishi Steel has commissioned production of spring steel sheet to Indospring. Mitsubishi Steel has exported semi-finished steel to Indovaja, Indospring’s subsidiary, and Indovaja has processed semi-finished steel into flat bar. Indospring has manufactured flat bar into flat sheet. However, price competition is recently being severer. Then Mitsubishi Steel and Indospring decided to start local production of semi-finished steel for cost reduction and stable supply.

Jatim is a carbon steel electric furnace maker and produces billet and rebar at 6,000 tonnes per month. Mitsubishi Steel will serve productive technology, facilities and operation. Mitsubishi Steel has exported semi-finished steel at 2,000 tonnes per month to Indovaja. Inodspring’s production volume was 59,000 tonnes for sheet and coiled spring in 2009 and the firm’s sales were 9.6 billion yen. The firm supplies products to domestic and Southeast Asian markets.