Nippon Steel’s Thai CH Wire JV to Keep High Operation

Nippon Steel Bar & CH Wire (Thailand), which is a joint venture of Nippon Steel, Japanese cold-heading steel wire makers and trade firms, increases CH wire production by 40% to about 2,000 tonnes per month for 2010 compared with the peak before the collapse of Lehman Brothers.

NBC’s CH wire production continues high level at around 2,000 tonnes per month since late 2009 when the automobile production is increasing in Thailand. The firm plans to increase the export to Indonesia and other Southeast Asian countries. Nippon Steel sees NBC becomes the base for CH wire exporting to Association of Southeast Asian Nations.

Thai automobile production is estimated to increase by about 30% to 1.3-1.4 million units for 2010 from 2009 and recovers 2008 level. NBC’s production has been increasing from 300 tonnes in January 2009 when the demand for CH wire, which is the material of security parts for automobile, is increasing in Thailand and other Southeast Asian countries. NBC plans to increase the export to meet the growing demand in ASEAN.

NBC has 2,500 tonnes of capacity per month. The firm started the operation in February 2008.