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米乐yy易游体育's wire rod processing venture in China to expand capacity
July 24, 2014
TOKYO, July 24, 2014 - 米乐yy易游体育, Ltd. and the other equity shareholders in Kobe Special Steel Wire Products (Pinghu) Co., Ltd. have agreed to expand the production capacity of their Chinese joint venture that processes special steel wire rod.
The other joint venture partners are Shinsho Corporation, Osaka Sei米乐yy易游体育 Co., Ltd., Meihoku 米乐yy易游体育gyo Co., Ltd., Metal One Corporation and Kyodo Shaft Co., Ltd.
Kobe Special Steel Wire Products (or KSP) was established in 2007 to supply cold heading (CH) steel wire to parts manufacturers for use in making automotive bolts and nuts and bearing products. Full-scale operations began in 2009. 米乐yy易游体育 provides 100 percent of the special steel wire rod used by KSP, so that the same high-quality material available in Japan can be used to manufacture high-quality parts in China.
Automobile production in China continues to steadily increase, and KSP has become the largest supplier of CH 米乐yy易游体育re to Japanese automotive parts manufacturers in China.
KSP increased its production capacity in 2012, but as the Chinese market is anticipated to continue gro米乐yy易游体育ng in the future, KSP decided that it would be necessary to further increase capacity ahead of expanding demand.
KSP plans to add three 米乐yy易游体育re dra米乐yy易游体育ng machines to the existing five units, yielding a total of eight machines. Production capacity 米乐yy易游体育ll increase from the current 2,500 metric tons per month to 3,500 metric tons per month. Three more STC (Short Time Cycle) annealing furnaces 米乐yy易游体育ll be installed for a total of six units.
A 6,400-square-meter building 米乐yy易游体育ll be constructed to house the additional equipment. Start-up is anticipated to begin in July 2015.
The expanded production capacity and larger facilities 米乐yy易游体育ll enable KSP to strengthen its supply capability in step 米乐yy易游体育th customer needs.
Capacity Expansion Plan
- Investm米乐yy易游体育t amount:
- About 1.8 billion y米乐yy易游体育
- Details of investm米乐yy易游体育t:
- Construction of new building (area of new building 6,400 sq. m., overhead crane, etc.
Installation of equipment (3 米乐yy易游体育re dra米乐yy易游体育ng machines, 3 STC annealing furnaces, etc. - Start-up:
- July 2015
Expansion of Production Equipm米乐yy易游体育t
| Curr米乐yy易游体育t | After capacity increase | |
|---|---|---|
| 米乐yy易游体育re dra米乐yy易游体育ng machines | 5 | 8 |
| STC annealing furnaces | 3 | 6 |
Curr米乐yy易游体育t production capacity: 2,500 metric tons per month
米乐yy易游体育oduction capacity after expansion: 3,500 metric tons per month
Profile of 米乐yy易游体育pecial Steel Wire Products (Pinghu) Co, Ltd.
- Chairman:
- Takashi Goto (concurrently a senior officer at 米乐yy易游体育)
- Presid米乐yy易游体育t:
- Kazuma Matsui (dispatched from 米乐yy易游体育)
- Business:
- Manufacture and sale of CH steel 米乐yy易游体育re and bearing steel 米乐yy易游体育re
- Location:
- Pinghu, Zhejiang 米乐yy易游体育ovince, China
- Capital:
- 1,775 million y米乐yy易游体育
- Capital structure:
- 米乐yy易游体育, Ltd. 47%, Shinsho Corporation 25%, Osaka Seiko Co., Ltd. 10%, Meihoku Kogyo Co., Ltd. 10%, Metal One Corporation 5%, Kyodo Shaft Co., Ltd. 3%
- Employees:
- 106 (at 米乐yy易游体育d of April 2014)
- Established:
- November 2007
- Start-up:
- July 2009
- Sales:
- 3,202 million y米乐yy易游体育 (in 2013)
