Sumitomo Metal and China Steel cancel auto steel plan

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.