Nippon Steel Decides to Install New Continuous Galvanizing Line at Kimitsu Works

SEATTLE (Scrap Monster): Nippon Steel and Sumitomo Metal Corporation (NSSMC) has announced its decision to install new galvanizing line at its steel facility in Kimitsu City, Chiba Pref. 299-1141, Japan. The installation of the new continuous hot-dipped galvanizing line is expected to boost the mill’s production of ultra-high-tensile steel sheets. The new line has a production capacity of around 400,000 tons per annum and is expected to commence production during Q2 of fiscal year 2020.

The new galvanizing line will replace the existing No.4 continuous galvanizing line. Further to installation of the new line, the No.4 line will cease to operate. The line will be capable to produce wide range of products including hot-dipped galvanized steel sheets and hop-dipped galvannealed steel sheets. Also, it will be able to produce ultra-high-tensile steel sheets with tensile strength of up to 1.5 GPa.

The installation of the new galvanizing line is in accordance with the company’s strategy to contribute to customers’ value creation by offering high-performance materials.

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There has been a huge rise in demand for ultra-high-tensile steel from the automotive industry, mainly on account of the rising demand for light weight, high strength body parts on account of regulations imposed by countries across the world. The anticipated growth in market demand for electric-powered vehicles may also boost the demand for lighter automotive body parts with enhanced strength capabilities. It is under these circumstances that Nippon Steel has decided to make big investment into the new galvanizing line at one of its prime steelmaking facilities.

Of late, the Japanese steelmaker has been on an acquisition spree. It had entered into an agreement with ArcelorMittal to jointly acquire assets of bankrupt Indian Essar Steel. Also, it had started negotiations towards acquiring Japanese Sanyo Special Steel Co. and Swedish special steel maker Ovako AB.