Sumitomo Metals Plans 50% Higher Crankshaft Output in 2010

Sumitomo Metal Industries expands the forged crankshaft output by around 50% in 2010 from 2009 at the plants in Japan, China, USA and India. The operation reached the peak at the US subsidiary, International Crankshaft Inc. (ICI) with recovering demand. The Chinese subsidiary, Huizhou Sumikin Forging Co., Ltd. (HSFC) keeps increasing the output while the Indian joint venture, SMI Amtek Crankshaft Pvt. Ltd. Started operation in April. The firm tries to increase the world market share to more than 10% by following growing demand both from Japanese automakers’ transplants and other makers in US, China and India.

The largest offshore plant of ICI increases the operation since January and now operates at annual 1.6 million unit level as the peak in 2007. Sumitomo Metals expects the demand will keep firm when US consumption recovers under stimulus package by US government.

US Big 3 including General Motors use mainly casting crankshaft while the forged crankshaft represents 20-30% of their consumption. However, they shift to forged products for better fuel efficiency. Sumitomo Metals expects the forged products’ rate will increase to 60-70% in 2013 as Japanese automakers.

HSFC plans to produce 1.1 million units of products in 2010 from 750,000 units in 2009 when the demand grows even during worldwide financial crisis. The firm, which has 1.8 million units of annual production capacity at the 2 lines, tries to develop the market for Chinese automakers while the firm now supplies the products mainly for Japanese and European transplants.

SMI Amtek Crankshaft increases crankshaft production step by step after Sumitomo Metals joined the company while the joint venture now makes knuckle parts mainly. The venture increases the crankshaft production weight to 50% in 2-3 years through the market development effort.

Sumitomo Metals’ Osaka steel works increases the crankshaft operation rate to 80% of the peak in 2007 thanks to stimulus package while the production decreased by 35% in 2009 compared with 2007 level. The firm expects the production could reach 3 million units in 2010, which represents around 85% of the peak, while the demand is uncertain due to end of the stimulus package for environmental friendly car purchase. The firm added 50 tonnes hummer earlier the year to make large crankshaft for truck, construction machinery and power generation plant when the demand grows in China and Southeast Asia.

Sumitomo Metals completed the offshore production base after the launch of the Indian joint venture. The firm tries to develop the local market in USA, China and India with cooperation with Japanese trading companies.