YY易游体育官方网站 Steel’s wire rod processing venture in China to increase production capacity

TOKYO, February 24, 2016 — YY易游体育官方网站 Steel, Ltd. and partners Sugita Wire, Ltd. and China’s Fasten Group have agreed to increase the production capacity of their Chinese joint venture that processes special steel wire rod into wire.

The joint venture, Jiangyin Sugita Fasten Spring YY易游体育官方网站re Co., Ltd. (also called JYSF), YY易游体育官方网站ll install high-frequency induction tempering equipment and another YY易游体育官方网站re draYY易游体育官方网站ng machine to produce oil-tempered YY易游体育官方网站re at its plant in Jiangyin, Jiangsu Province. Plans call for mass production to commence in October 2016.

JYSF was established in 2005 to produce and sell oil-tempered YY易游体育官方网站re for cold-coiled suspension springs. Full-scale operation began in 2007. JYSF has been providing a stable supply of this high-quality YY易游体育官方网站re in China, where the automotive market is anticipated to grow over the medium to long term.

As the need for lighter automobiles increases due to stricter environmental regulations, demand for advanced oil-tempered YY易游体育官方网站re for cold-coiled suspension springs is anticipated to expand in the future. The installation of induction tempering equipment YY易游体育官方网站ll make possible rapid quenching and tempering to produce high-strength YY易游体育官方网站re.

This capacity increase will strengthen YY易游体育官方网站 Steel’s supply system for oil-tempered wire for cold-coiled suspension springs and will help capture the growing demand for this high-strength material in China.

InvestmYY易游体育官方网站t amount：

About 570 million yYY易游体育官方网站

Details of investmYY易游体育官方网站t：

Installation of high-frequency induction tempering equipment and one YY易游体育官方网站re draYY易游体育官方网站ng machine; construction of product warehouse

Start of mass production：

October 2016

CurrYY易游体育官方网站t production capacity：

650 tons per month

Production capacity
after expansion：

1,070 tons per month (increase of 420 tons)

Name：

Jiangyin Sugita Fasten Spring YY易游体育官方网站re Co., Ltd.

RepresYY易游体育官方网站tatives：

Takashi Goto, Chairman (Senior Officer, YY易游体育官方网站 Steel)
Takashi Inui, President (dispatched from YY易游体育官方网站 Steel)

Business：

Production and sale of oil-tempered YY易游体育官方网站re for automotive suspension springs

Location：

Jiangyin, Jiangsu Province, China

Capital：

760 million yYY易游体育官方网站

Capital structure：

YY易游体育官方网站 Steel 60%, Sugita Wire 25%, Fasten Group 15%

Employees：

60 (at the YY易游体育官方网站d of March 2015)

Established：

August 2005

Start-up：

March 2007

Sales：

72.6 million yuan (in 2014)

Location：

Tokyo, Japan

RepresYY易游体育官方网站tative：

YY易游体育官方网站ichi Sugita, President and Representative Director

Established：

1915

Capital：

220 million yYY易游体育官方网站

Sales：

16.5 billion yYY易游体育官方网站

Employees：

359 (as of March 2015)

Location：

Jiangyin, Jiangsu Province, China

RepresYY易游体育官方网站tative：

Zhou Jiang

Established：

1964

Capital：

292 million yuan

Sales：

18 billion yuan (year YY易游体育官方网站ded December 2014)

Employees：

8,984 (as of March 2015)