Dongbu Steel to Expand Cold Sheet Capacity to 3MT in 2011

Dongbu Steel, South Korean major steel maker plans to increase the capacity of cold rolling mill to 3 million tonnes per year until 2011, explained an executive officer of Dongbu Steel at an interview with Japan Metal Bulletin. The firm increases the capacity by 350,000 tonnes per year with 25 billion won of investment. The annual production of cold rolled sheet in 2010 is scheduled at 2.8 million tonnes, increasing by 18% from 2009. The firm will continue hot rolled sheet procurement from external suppliers at above 50% of the total consumption while in 2011, when Dongbu Steel’s new hot rolling mill enters 3 million tonnes of annual full production, the firm will secure the cold rolling capacity as much as hot rolling mill.

The firm plans to increase the cold rolling capacity by conversion of existent cold rolling lines in Asan Gulf plant and Inchon plant, for example, the speedup of the lines’ motors. The firm’s production hit 680,000 tonnes for January-March 2010 thanks to the full operation.

Dongbu Steel will continue the purchase of high grade steel sheet from Japan or POSCO. The firm purchases hot rolled sheet at approximately 1.7 million tonnes in 2010, 1 million tonnes of which is imported from Japan. In 2011, the firm would procure hot rolled sheet at 1.5-1.8 million tonnes per year from external suppliers

The hot rolling mill’s production was 180,000 tonnes per month in March and is scheduled at 200,000 tonnes or less in April. The firm tries to raise the output to above 200,000 tonnes, the breakeven volume, in and after May. The mill recently started test production of hot rolled sheet for X65 grade of American Petroleum Institute in order to enhance high grade steel products.