Japanese Steelmaker Expands Forging Capacity for Nuclear Reactors

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Researched by Industrial Info Resources (Sugar Land, Texas)--One of the world's leading ultra heavy forgings manufacturers, Japan Steel Works Limited (TYO:5631) (JSW) (Tokyo, Japan) recently completed the first phase of the expansions that the company began planning in 2008 in a bid to triple capacity.

The first phase, estimated to be worth about $530 million, includes the installation of a new forging unit with heavy cranes, heat-treatment facilities, and most importantly, a 14,000-ton forge press at the Muroran plant on Japan's second-largest island, Hokkaido. This is in addition to an existing 14,000-ton press, many smaller machines, and a 12,000-ton forging press for pipes.

The company informed the media that the new forging shop was the most important part of the first phase, adding that the second round of investments, amounting to another $320 million, would be completed in 2011. At this juncture, JSW foresees its capacity for manufacturing forged units for nuclear reactors, tripling from its 2007 level. According to the company, the augmented capacity would satisfy the requirements for 12 reactor pressure vessels and main component sets per year.

Sources believe that the hike in the plant's forging capacity will begin to show by mid-2012, as factories start churning out new components. JSW's Muroran plant also manufactures rotor shafts for generators and steam turbines, clad steel plates, and nuclear power plant turbine casings.

JSW, a major global supplier of heavy forgings, currently claims market leadership for large nuclear components, accounting for nearly 80% of the world's market for large forged nuclear power plant components, including the steam generator, reactor pressure vessels and turbine shafts.

However, other market players are quickly emerging as legitimate competitors to JSW. It is reported that while Russian and Chinese suppliers are gearing up to cater to domestic requirements, South Korea already provides components in the international market and will possess a major forge press by 2013.

One of the world's leading forging companies and engineering package providers, Sheffield Forgemasters International Limited (SFIL) (Sheffield, England) was recently granted an £80 million ($122 million) loan for SFIL's 15,000-ton press, worth an estimated £140 million ($213.8 million). SFIL and India's Bharat Forge Limited (BSE:500493) (Pune, Maharashtra) are preparing to join JSW's ranks by 2014, while a tie up between global integrated power systems provider Rolls Royce Group plc (OTC:RYCEY) (London, England) and engineering, construction and manufacturing company, Larsen & Toubro Limited (BSE:500510) (L&T) (Mumbai), for nuclear power plant forgings manufacturing, may also be in the offing.

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