Japanese steel tubes and pipes producer Sumitomo Metal Industries (Sumitomo Metals) has announced its intention to increase its output of high-performance steel tubes for power plants and the oil and gas industry by 30 percent by 2012.
In line with this expansion project, Sumitomo Metals is to invest more than Yen 10 billion ($92 million) in its Amagasaki-located steel tube mill, increasing its production capacity of tubes for nuclear power plants from 600 mt currently to 1,400 mt by 2012 and its output capacity of boiler tubes for state-of-the-art coal-fired power plants from 24,000 mt to 30,000 mt by 2011. Many of these tubes will be destined for China, which is rapidly adding to its electric-power infrastructure.
Sumitomo Metal's production capacity of pipes used by the oil and gas industry is to increase from 19,000 mt to 24,000 mt by 2011. Demand for durable pipes is high from US and European companies, which are increasing their deepwater drilling operations.