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P.T. Indonesia Nippon Steel Pipe Increases Capacity
05/04/2010 - P.T. Indonesia Nippon Steel Pipe has decided to increase its production capacity by building another plant at a site adjacent to the existing plant. The new plant will have a 2-in electric-resistance-welded pipe mill for both stainless and carbon steels.
P.T. Indonesia Nippon Steel Pipe (INP), with a 95% shareholding by Siam Nippon Steel Pipe Co., Ltd., has decided to increase its production capacity by building another plant at a site adjacent to the existing plant.
The new plant will have a 2-in electric-resistance-welded pipe mill for both stainless steel and carbon steel. Production capacity will be 1500 tonnes per month. Start-up is anticipated in November to December 2010, with start of commercial production in April 2011.
The move is in response to an expected increase in demand for steel pipe for two-wheeled and four-wheeled vehicles due to the growing Indonesian economy, tightening of regulations against exhaust gas emissions of two-wheeled vehicles (conversion of exhaust system pipe to stainless steel), an increase in local procurement, and the resulting requests for supplies from Japanese automakers in Indonesia.
To supply high-grade pipes including exhaust system stainless pipes, INP and Sumitomo Metal Pipe & Tube Corp., a subsidiary of Sumitomo Metal Industries, Ltd., will combine advanced technology held by each. A new company is to be established by Sumitomo Pipe & Tube and Sumitomo Corp. (NewCo).
To supply high-grade pipes including exhaust system stainless pipes, INP and Sumitomo Metal Pipe & Tube Corp., a subsidiary of Sumitomo Metal Industries, Ltd., will combine advanced technology held by each. A new company is to be established by Sumitomo Pipe & Tube and Sumitomo Corp. (NewCo).
INP will increase its capital by third-party allotment of new shares (3100 shares) to be subscribed by NewCo. The shareholding structure will be SNP 69.6%, Toshida Industry 3.7%, and NewCo 26.7% (before capital increase: SNP 95%, Toshida Industry 5%).
For the automotive steel pipe business overseas, Nippon Steel has recently decided to establish a new business base (Wuxi NSP Automotive Parts Co., Ltd.) in East and North China.
