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Nippon Steel Establishes Automotive Steel Pipe Business in India
10/20/2010 - Nippon Steel Corp. has established a new automotive steel pipe business in India, Nippon Pipe India Private Ltd, to capture growing demand there. In the state of Rajasthan in the northern part of India, Siam Nippon Steel Pipe Co., Ltd. will build a base for manufacturing and selling electric-welded pipes for two- and four-wheeled motor vehicles.
Nippon Steel Corp. (NSC) has established a new automotive steel pipe business in India, Nippon Pipe India Private Ltd, to capture growing demand there. In the state of Rajasthan in the northern part of India, Siam Nippon Steel Pipe Co., Ltd. (SNP), a Thailand-based consolidated subsidiary, will build a base for manufacturing and selling electric-welded pipes for two- and four-wheeled motor vehicles.
The shareholding structure for the new business is SNP 98%, Toshida Kogyo 2%.
Cutting and heat treating are expected to start in 2012; pipe manufacture and subsequently integrated manufacturing setup completion is anticipated in 2014. Planned capacity is approximately 800 tonnes per month in 2012 and about 2000 tonnes per month in 2014.
NSC notes that about 10 million two-wheeled motor vehicles and 2.4 million four-wheeled motor vehicles were produced in India in 2009 and that auto production is expected to expand further in the future. The company also states that Japanese automakers have been actively expanding their capacities in India, offering the prospect of a rapid expansion of the markets for pipes of medium and high grades.
NSC built a business base in PT. Indonesia Nippon Steel Pipe (2007) and is planning to build another one in Wuxi NSP Automotive Parts Co., Ltd. (2011). The company will use its “Model of Integrated Manufacture” in India, which incorporates materials and pipe manufacture to cold drawing, heat treating, and fabrication of auto parts and components.
