Japanese Metal Industry Builds Plants Overseas for Automotive Companies

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Researched by Industrial Info Resources (Sugar Land, Texas)--Major Japanese metal companies, such as DOWA Metals & Mining Company Limited (Tokyo, Japan), Kobe Steel (Tokyo, Japan) and the newly merged Nippon Steel & Sumitomo Metal (Tokyo, Japan), are building new plants around the globe. Most of these are automotive-related and are based in Southeast Asia, Central America and South America. Parts made at these facilities are used to manufacture cars in these countries.

Some companies already have plants in those regions and are adding new equipment and lines to increase production capacities. There have been new plants or production lines because there has been demand from the automotive companies that have production plants in these regions.

Steel and nonferrous companies are spending capital on plants, such as a zinc processing plant for approximately $17 million; rare earth processing plants for approximately $51.4 million; and a nonferrous metal rolling mill for approximately $31 million.

The steel companies are developing new technologies to produce stronger and lighter steel plates, such as high-tension steel plates, and are contributing to reducing the weight of the vehicles.

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