This segment consists of the railway, automotive, and machinery parts operation that manufactures railway parts and forged crankshafts; specialty steel bar and wire rod operation; and stainless steel and titanium operation.
Main products are railway wheels and axles where we hold a 100% share in Japan, and forged crankshaft with global share of around 8%.
In the field of railway wheels and axles, we establish a two-base global production-and-sales structure by adding a base in the United States. In the field of forged crankshaft, we have established a four-base global production-and-sales structure.
a) Railway parts
The global markets for high-speed passenger railways, as eco-friendly means of transportation, is expected to grow rapidly.
b) Forged crankshafts
Demand for crankshafts is expected to increase steadily, thanks to growth in automobile production in emerging countries such as China and India.
a) Railway parts
Requirements for safety and advanced functions (low vibration, low noise) are becoming higher as railway operating speed increases.
b) Forged crankshafts
The move into smaller and higher-performance engine is encouraging a shft from cast steel crankshafts to forged crankshafts.
a) Railway parts
We will increase global share in high-speed railway wheels and axles, the area where we are competitive with high quality, advanced function and reliability.
We will leverage our technological strength and accelerate distinctiveness in high value-added area such as heavy-load abrasion-resistant wheels used in mining railways.
b) Forged crankshafts
Sumitomo Metals has led the industry by introducing new technologies for lighter crankshafts and special-shaped crankshafts for V-type engines. We are endeavoring to continue development of lighter, high-precision crankshafts.
a) Railway parts
We have decided to acquire Standard Steel, one of the leading manufacturers of railway wheels and axles in the United States. We establish a two-base global production-and-sales structure, and thus accelerate our sales expansion in the global market.
b) Forged crankshafts
With the start of our factory in India in April 2010, we now have four-base production-and-sales structure, which comprises Japan, the United States, China, and India. We With the 9.3 million unit supply capacity of our four bases, we aim to soon raise our global share to over 10%.
We are a leader in manufacturing capabilities for highly functional steel and ultra-clean steel. New steelmaking plant has realized highly efficient, high quality manufacturing with a low environmental burden. We emphasize technology and quality to raise our corporate value.
1. Customers demand higher quality
Our materials are used for security parts of automobiles. Therefore, customers’ demands for quality get tougher to reduce weight and improve safety.
1. We will expand overseas with a base in Japan
a) We have strengthened our factory in Japan: investment in new steelmaking plant and new finishing roll equipment for steel bars.
b) We aim to grow by expanding business in large automotive markets such as the United States and Asia.
Steel Processing (Thailand) Co., Ltd.
2. We will accelerate distinctiveness by creating new technologies and new products
a) We are competitive particularly in highly functional steel (i.e., advanced workability) and ultra-clean steel (i.e., longer life and improved fatigue characteristics.)
b) We will accelerate distinctiveness by aggressively developing new technologies and new products.
Our stainless steel materials are used in automobiles and for environmental/energy related areas. We have strengths in highly functional materials such as heat-resistance, corrosion-resistance or workability. We will expand our titanium business in aerospace, power generation, and automobiles by emphasizing our high quality.
1. Customers are demanding advanced quality and the market for highly functional materials is growing
a) We expect demand growth and advanced quality requirements for stainless steel used as engine gasket, exhaust manifold, and materials for electric car batteries.
b) Demand for titanium is also expected to expand for aerospace, power generation, and heat exchangers.
1. We will continuously develop highly functional materials
a) We focus on highly functional material, primarily for automobiles and environmental/energy-related uses.
b) Our focus is on high quality titanium products demanded in growth markets such as aerospace, power generation, and heat exchangers.
2. We will accelerate distinctiveness by emphasizing joint development with customers
We will develop products that respond to customers’ requests, accelerate distinctiveness, and raise our corporate value.
