Nippon Steel’s Sakai Works Raises Export Rate

Nippon Steel’s Sakai works increased the export rate to 40% in April-June, which was 10 percentage points higher than the level in second half of fiscal 2009 ended March 2010. The works tries to get supply contract for offshore major projects through the effort to get international standards and to build export shipping infrastructure when the offshore demand is strong for high valued construction steel products. The works plans to keep around 40% of export rate through fiscal 2010.

The works got around 8,000 tonnes of large H-beam order for hospital building in United Arab Emirates (UAE) to ship 3 months during fist half of fiscal 2010. The works also provides total 19,000 tonnes of Hat-type sheet pile and constant outer dimension H-beam for river development in Philippines to ship from second half of fiscal 2009 to first half of fiscal 2010. The works also ships around 20,000 tonnes of large H-beam for common duct of subway in Singapore to ship from first half of fiscal 2009 to first half of fiscal 2010.

The works’ export rate was maximum 10% before. However, the works tries to meet growing demand recent years when offshore demand is strong for major infrastructure projects and high rise building projects with large scale consumption for high valued construction steel products while emerging countries depend on import for such high valued steel products supply.

Nippon Steel gets export orders aggressively and Sakai works also improves the export shipping and production adjustment. The works’ export rate increased to 40% in April-June from more than 30% in second half of fiscal 2009, near 20% in first half of fiscal 2009 and around 4% in second half of fiscal 2008.

Sakai works tries to increase the export shipment for high valued products including Hat-type sheet pile, H-beam with constant outer dimensions and thick and large H-beam while the works tries to develop new high valued construction steel products.

The works produced monthly 55,000 tonnes in April-June while the production was near 70,000 tonnes in May after major maintenance outage in April. The H-beam production was more than 50,000 tonnes per month in April-June while the H-beam production was only around 20,000 tonnes in April due to 19 days maintenance in April.

The H-beam production including constant outer dimension H-beam represented around 70% of the total production in April-June while sheet pile was around 20% and other products including inverted angle steel was around 10%. The works keeps major supply cut for H-beam to domestic distributors and the production is less than 5% of the total production.