Hitachi Metals to Expand Asian Tool Steel Sales, Process Network

Hitachi Metals expands Asian network of tool steel sales, processing and heat treatment service. The firm establishes sales and processing base in each major countries to improve the user support and cost competitiveness. The firm tries to increase the market share from current 20-25% in Asia to more than 30% by expanding the sales to local users along with Japanese transplants. The firm improves the brand power for tool steel in growing Asian market.

The firm has 22 tool steel sales bases including agents in Asian 8 countries. The firm launched Vietnamese operation for heat treatment service in February while the firm prepares to start sales, processing and heat treatment service in China in the year through cooperation with local company in Chongqing. When Hitachi Metals would decide the Chinese new business, the firm apparently sends sales persons and engineers for heat treatment in the early stage as Vietnamese operation.

The firm tries to increase the tool sales and processing volume for automobile and appliances makers in China through further tie-up with Osaka based special steel dealer, Umetoku Inc. Hitachi Metals develops inner China market including Chongqing and Chengdu.

The firm provides comprehensive support including heat treatment to Indian tool steel sales and processing company, Goel Steel Company, which has bases in Chennai, New Delhi and Mumbai. However, Hitachi Metals expects the development of Indian market could take longer term when European makers already have certain market share. The firm tries to appeal the development ability, quality along with cost competitiveness and marketing power.

The firm’s offshore sales represent around 25% of total tool steel sales. The cold rolled tool steel represents around 40% of the total sales including hot rolled tool steel and mold steel for plastic.