Sumitomo Metal and China Steel cancel auto steel plan
Sumitomo Metal Industries (SMI),
Japan's third-largest steelmaker, and
China Steel Corp. (
CSC),
Taiwan's largest steel producer, announced their decision against cooperating in a project to make auto steel in
China to cater to the increased demand for steel by automakers in
China.
SMI's President Hiroshi Shimozuma announced yesterday that the reason behind the cancellation of the plans to bring steel from
Japan to process into auto steel is that it was not likely to be profitable.
Also, according to the vice-president of
China Steel, the plan to build the auto steel plant in
China was not feasible because there were doubts about the return on investment as well as the market and supplies from
Taiwan and
Japan.
Alternatively, SMI may build hot-dip galvanizing lines at its Kashima steel plant in
Japan's Ibaraki district.