Japan's Kobe Steel Works announced on October 17 that it will establish a joint venture with China’s Anshan Iron and Steel Group to build a new steel plate plant in China. Anshan's ironworks will introduce new heat treatment equipment. From 2016 onwards, high-strength steel plates (abbreviated as high-strength steels) will continue to grow in demand for automobile production. Japan's Nippon Steel & Sumitomo Gold and JFE Steel have previously joined forces with Chinese steel companies in the production of high-strength steel in China. So far, Japan's three major steel companies have launched China's high-strength steel strategy.
Kobe Steel will invest 49% in a joint venture with Anshan Iron and Steel Group to produce cold-rolled high-strength steel for the upper part of the car body through the introduction of heat treatment equipment. The investment amount is approximately 29 billion yen and the annual production capacity is expected to be 600,000 tons. Anshan provides cold-rolled steel sheets as raw materials.
The supply base for the new base is centered on major Japanese automakers such as Toyota Motor Corp., and Yuko Yamaguchi, vice-president of Kobe Steel, Yamaguchi said: “We must also sell to major Chinese auto companies such as the United States, Europe, and South Korea.†The goal is to obtain a 30% share of the Chinese cold-rolled high-strength steel market within 10 years.
The size of the Chinese automobile market reached 19 million in 2012. It is expected that when the new base is fully put into production by 2020, it will increase by about 50% to reach a scale of 30 million vehicles. Currently, the average number of high-strength steels used by Chinese cars is only 10 kilograms. Yamaguchi Yuge said that with stricter environmental protection requirements in the future, it is estimated that "the use of high-strength steel in each car will increase to about 70 kilograms, reaching the level of Japanese cars." .
Nippon Steel & Sumitomo Metal and Baosteel Group, which produces high-strength steel, set up a joint venture plant for hot-dip galvanized steel. It plans to increase production capacity by 30% to 1.7 million tons by 2015. In addition, JFE Steel also established a joint venture plant with Guangzhou Iron and Steel Group. The new production line started in 2012 and the production capacity has doubled to 800,000 tons.
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