Nippon Steel and WISCO Plan Expansion to Tinplate Joint Venture
08/08/2012 - Nippon Steel Corporation and Wuhan Iron and Steel Corporation (WISCO) plan to double producion capacity at their Chinese joint venture, WISCO-Nippon Steel Tinplate Co., to 400,000 tonnnes/year of tinplate and 400,000 tonnes/year of tin mill black plate.
Nippon Steel Corporation and Wuhan Iron and Steel Corporation (WISCO) established in October 2011 a joint venture, WISCO-Nippon Steel Tinplate Co., Ltd. (WINSteel) for the manufacture and sale of tinplate,, which is now building a tin mill (one continuous annealing and processing line and one electrolytic tinning line) in Wuhan City, Hubei Province, China.
WINSteel, in addition to these facilities, has decided to lease the facilities concurrently being built by WISCO upon their start-up, and to operate them integrally, thus expanding its scale of business.
Facilities to be leased from WISCO are three: one continuous descaling and cold-rolling mill, one continuous annealing and processing line, and one electrolytic tinning line. Combined with its own facilities, WINSteel will be operating five lines in total: one continuous descaling and cold-rolling mill, two continuous annealing and processing lines, and two electrolytic tinning lines.
By this business expansion, WINSteel’s productive and sales capacities will be 400,000 tonnes/year of tinplate and 400,000 tonnes/year of tin mill black plate, totaling 800,000 tonnes/year, twice of the present scale, making WINSteel next only to BAOSTEEL in China. Further, leasing continuous descaling and cold-rolling mill enables WINSteel to pursue higher levels of quality control through control over the entire operations from continuous descaling and cold rolling through to electrolytic tinning. Reduction in the company’s burden of initial funds, as compared with its own construction is also expected.
Some main facilities have already started construction. All the lines are scheduled to be put into operation successively in September to December 2013. With increasing population and rising living standards in new emerging nations, demand for tinplate used for food cans, beverage cans, and other containers has been growing on a global basis. Likewise, in China’s mid-western area, the main target area of WINSteel, tinplate demand is expected to gather strength in the future.
Nippon Steel, which is expanding its business worldwide and becoming a global player, aims to combine and fuse together WISCO’s solid business base in China with Nippon Steel’s leading technologies in the world for WINSteel. It endeavors to catch the growing local demand for tinplate, and to thus contribute to the economic development of China through the supply of tinplate products.
Outline of WINSteel:
• Company name: WISCO-NIPPON STEEL Tinplate Co., Ltd.
(Abbreviation: WINSteel)
(Chinese name: 武钢新日铁（武汉）镀锡板有限公司)
• Location: Wuhan City, Hubei Province, China
• Own production facilities (capacities):
1 continuous annealing and processing line (400,000 tonnes/year)
1 electrolytic tinning line (200,000 tonnes/year)
• Leased facilities (capacities):
1 continuous descaling and cold-rolling mill (800,000 tonnes/year)
1 continuous annealing and processing line (400,000 tonnes/year)
1 electrolytic tinning line (200,000 tonnes/year)
• Products: Tinplate and tin mill black plate
• Scheduled start of operation: September to December 2013
• Total investment: RMB1,850 million (approx. JPY23,000 million)
• Capital: RMB1,850 million
• Equity ratios: NIPPON STEEL 50%, WISCO 50%
• Company name: WISCO-NIPPON STEEL Tinplate Co., Ltd.
(Abbreviation: WINSteel)
(Chinese name: 武钢新日铁（武汉）镀锡板有限公司)
• Location: Wuhan City, Hubei Province, China
• Own production facilities (capacities):
1 continuous annealing and processing line (400,000 tonnes/year)
1 electrolytic tinning line (200,000 tonnes/year)
• Leased facilities (capacities):
1 continuous descaling and cold-rolling mill (800,000 tonnes/year)
1 continuous annealing and processing line (400,000 tonnes/year)
1 electrolytic tinning line (200,000 tonnes/year)
• Products: Tinplate and tin mill black plate
• Scheduled start of operation: September to December 2013
• Total investment: RMB1,850 million (approx. JPY23,000 million)
• Capital: RMB1,850 million
• Equity ratios: NIPPON STEEL 50%, WISCO 50%
