Japanese steelmaker Nippon Steel & Sumitomo Metal Corporation (NSSMC) has announced that, together with its automotive steel joint venture partner Baoshan Iron & Steel Co., Ltd. (Baosteel), it is planning to construct a fourth hot dip galvanizing line with an annual production capacity of 420,000 mt of high-grade automotive galvanized steel sheet at their Shanghai-based joint venture Baosteel-NSC Automotive Steel Sheets Co., Ltd. (BNA). The new line is scheduled to go into operation in 2015. The investment is expected to amount to RMB 1.1 billion ($176 million).
NSSMC stated that the plan to increase the capacity is due to the growth in demand for galvanized steel sheet for automotive use, mostly from Japanese automakers further building up their capacities in China. The joint venture also aims to meet the automakers' need for advanced high strength steel to permit further weight reduction for better performance in fuel economy, against the background of expanding demand in the automotive sector in China.
The new hot dip galvanizing line will additionally be capable of manufacturing advanced high strength steel materials, though similar in type to the existing first and third hot dip galvanizing lines.