Nippon Steel, BlueScope Steel to Develop New Coated Steel for Construction

Nippon Steel announced on Wednesday the firm singed comprehensive and long term joint technical collaboration agreement with BlueScope Steel to develop next generation coated steel products for global building and construction market. They develop new aluminium and zinc coated flat steel for construction applications including roof and wall to launch in 2012-2013.

They agreed to license original high valued coated steel products for construction application each other while they start joint development for new products to serve world construction market. They would expand the alliance for technology and knowhow belonged to the group companies including Nippon Steel & Sumikin Coated Sheet and sharing offshore production and processing facilities.

The agreement term is expected to ne more than 20 years. They try to develop the next generation coated steel with better workability, surface beauty and corrosion resistance. They already started various test activity for corrosion resistance. With the new products, they try to secure world top position in construction sheet steel products’ market.

Nippon Steel has SUPERDYMA and other high valued coated steel products line for construction applications including roof, wall, interior and structural use. World demand of aluminium and zinc coated flat steel is around 8 million tonnes per year including around 5 million tonnes in Asia and Pacific region. The demand is expected to increase especially for alloy saving high valued products.

Nippon Steel focuses on domestic market for such construction steel products while the firm expands the offshore business for automobile and appliances. However, Japanese demand for construction is expected not to increase due to lower population and higher yen condition. The firm decided to expand global activity for construction steel products under the global player strategy.

The new alliance with BlueScope Steel is a part of such strategy while Nippon Steel already invested in Yung Kong Galvanising Industries Berhad (YKGI) of Malaysia, which is a flat rolled reroller to serve construction market, and decided to build plant to make pipe pile and pipe sheet pile in Vietnam earlier the year. Nippon Steel tries to expand the global activity to follow world construction steel market.

BlueScope Steel has hot dip galvanizing lines and processing plants for construction market in Australia, Asia and North America to provide integrated supply from sheet steel to building parts. The firm posted A$ 10.3 billion of sales for fiscal 2009. The firm has 40 years relationship with Nippon Steel and BlueScope Steel and Nippon Steel entered into distributorship agreement for SUPERDYMA in Australia and Asia in 2005.