Nippon Steel and Baosteel Plan Capacity Expansion at Automotive Sheet JV in China
09/05/2013 - Nippon Steel & Sumitomo Metal Corporation (NSSMC) and Baoshan Iron & Steel Co., Ltd. (Baosteel) are planning to construct a fourth hot-dip galvanizing line at their Baosteel-NSC Automotive Steel Sheets Co. (BNA) joint venture in China. Start of operations is planned for 2015.
Nippon Steel & Sumitomo Metal Corporation (NSSMC) and Baoshan Iron & Steel Co., Ltd. (Baosteel) have been planning to construct a fourth hot-dip galvanizing line at a site neighboring the existing lines at their Baosteel-NSC Automotive Steel Sheets Co. (BNA) joint venture, which operates within the compound of Baosteel in Shanghai, in response to growing demand for galvanized steel sheet (GA) for automotive use mostly from Japanese auto makers building up their capacities in China, and also in response to the need for advanced high strength steel to permit further weight reduction for better performance in fuel economy. BNA has now obtained approval of the project from the government of the City of Shanghai. This is a major investment for capacity increase following the third hot-dip galvanizing line, which was put into operation in 2010. This new line, though similar in type to the existing first and third hot-dip galvanizing lines, is additionally capable of manufacturing advanced high strength steel materials (e.g. galvanized dual-phase 980 steel), with a production capacity of 420,000 tons per year of high-grade automotive galvanized steel sheet. The start of operation of the new line is slated for 2015.
Profile of BNA
-Name: Baosteel-NSC Automotive Steel Sheets Co., Ltd.
-Establishment: July 2004
-Business: Manufacture and sale of automotive steel sheet (cold-rolled steel sheet, hot-dip galvanized steel sheet, etc.)
-Product: Cold rolled steel sheet, hot-dip galvanized steel sheet (primarily for automotive use, partly for electric appliances and construction materials)
-Equipment:
Pickling/cold rolling: 2.4 million tons/year
Continuous annealing (C.A.P.L.): 950,000 tons/year
No. 1 hot-dip galvanizing line (No. 1 CGL): 450,000 tons/year
No. 2 hot-dip galvanizing line (No. 2 CGL): 350,000 tons/year
No. 3 hot-dip galvanizing line (No. 3 CGL): 450,000 tons/year (operative in 2010)
-Employees: about 650
-Registered capital: 3,000 million yuan
-Equity ratio: NSSMC 50%, Baosteel 50%
Profile of BNA
-Name: Baosteel-NSC Automotive Steel Sheets Co., Ltd.
-Establishment: July 2004
-Business: Manufacture and sale of automotive steel sheet (cold-rolled steel sheet, hot-dip galvanized steel sheet, etc.)
-Product: Cold rolled steel sheet, hot-dip galvanized steel sheet (primarily for automotive use, partly for electric appliances and construction materials)
-Equipment:
Pickling/cold rolling: 2.4 million tons/year
Continuous annealing (C.A.P.L.): 950,000 tons/year
No. 1 hot-dip galvanizing line (No. 1 CGL): 450,000 tons/year
No. 2 hot-dip galvanizing line (No. 2 CGL): 350,000 tons/year
No. 3 hot-dip galvanizing line (No. 3 CGL): 450,000 tons/year (operative in 2010)
-Employees: about 650
-Registered capital: 3,000 million yuan
-Equity ratio: NSSMC 50%, Baosteel 50%
