Nisshin Steel expands its production capacity in China

Nisshin Steel expands its production capacity in China

Japan's integrated steelmaker Nisshin Steel is planning to expand its stainless steel production capacity in China. Ningbo Baoxin Stainless Steel Co. which is an affiliate of Nisshin Steel, will raise its annual cold rolled stainless sheet production capacity to 600'000 tons by the end of 2005. With this purpose, the company is going to install four new cold rolling mills, two annealing and pickling lines. Ningbo Baoshin has annual 80'000 tons production capacity of cold rolled stainless sheet when it was started operation in 1998. The company is aiming to increase its annual production capacity to 240'000 tons this year from 160'000 tons recorded at the end of last year. Nisshin Steel stated that the latest expansion could meet the strong demand for stainless steel in China. This expansion plan will cost about Yuan 3.8 billion (approx. $459 million). Nisshin owns 20% stake in the company while Chinese steel mills Shanghai Baoshan and Ningbo own 66%.