Toyota plans to buy more steel from South Korea and China

Toyota plans to buy more steel from South Korea and China

According to recent market news, Japanese automaker Toyota Motor Corp. is planning to purchase more steel from South Korea and start procuring steel from China to be prepared for the projected tight steel supply. Toyota will increase use of steel sheet made by South Korean largest steelmaker POSCO while begin buying steel from China's Shanghai Baosteel Group Corp. for its Southeast Asian plants. Toyota will also seek to ensure a stable supply from Nippon Steel and JFE Steel Corp., its two major Japanese suppliers, in accordance with its production plans. At its domestic plants, Toyota now limits use of POSCO-made steel sheet to minor areas such as interior parts. On the other hand, the automaker plans to start using the material for doors and other major exterior parts as early as 2006. Toyota will also expand its business with Shanghai Baosteel to Southeast Asia where the automaker is releasing more new vehicles and increasing production. Shanghai Baosteel, which already provides steel for Toyota's joint venture in China, will start supplying to Toyota's Southeast Asian plants.