Hitachi Metals to Expand Steel Manufacturing Roll Capacity

Hitachi Metals plans to expand output capacity of rolls for steel manufacturers by 26% to 3,900 tonnes per month in fiscal 2015 ending in March 2016. The firm’s total roll production is expected to reach 2,900 tonnes in fiscal 2012 and even larger volume in fiscal 2015 from current 2,000 tonnes at domestic and overseas productive sites. Hitachi Metals will raise Chinese joint venture’s capacity in order to meet increasing demand in China, the world largest roll market. At the same time, the firm follows the demand growth in emerging countries including India where steel production is strongly increasing.

Replace demand of steel manufacturing rolls has increased in response to worldwide crude steel output expansion. For more than 20 Chinese customers, Hitachi Metals currently supplies 200-300 tonnes of steel manufacturing rolls from Hitachi Metals Wakamatsu, a group company in Fukuoka, Japan and 250 tonnes from Baosteel Hitachi Rolls (Nantong), a joint venture with Bao Steel starting operation in Jiangsu, China in 2008. Hitachi Metals plans to increase the JV’s capacity to 750 tonnes in fiscal 2012 and 1,400 tonnes in fiscal 2015 from current 600 tonnes.

In India, roll orders are increasing from major integrated steel makers. Hitachi Metals tries to increase order receipts in the country where many steel plant projects exist, also eyeing Southeast Asian market.

Wakamatsu’s roll output capacity is 2,500 tonnes per month and the current production is 1,800 tonnes mainly for manufacture of flat rolled steel and long products. Wakamatsu exports 200 tonnes of rolls for South Korea and some for Taiwan. The export rate is 45%. Hitachi Metals will expand Chinese JV to enhance local supply in China and utilize Wakamatsu to cover the demand in domestic market and export for other countries.

Hitachi Metals holds 35% top share in Japanese domestic market of steel manufacturing rolls. Hitachi Metals Group places in the third position of the global market.