Hitachi Metals, Ltd.

2010 News Release

November 9  

 

New Production Base in China for Piston Ring Materials

Tokyo, Japan, November 9, 2010―Hitachi Metals, Ltd. has today announced its plans to establish a production base in Suzhou, China, for piston ring materials used in automobile components. Bolstered by firm projections that the advancement of newly emerging nations will continue to be a key driving force behind worldwide economic development, Hitachi Metals is devoted to searching out markets around the world in its quest to become a genuine global company supported by sustained growth.

1. Background

The Chinese automobile industry in 2009 topped 13 million units in terms of both production and sales, and the country has emerged as the world’s largest market. The momentum of motorization in China continues to climb, fueling projections that the total number of units for the current year will increase to 16 million in the wake of the nation’s expanding economic growth. Mounting effective responses to this new market landscape promises to be critical in promoting the automotive components related business.
One of the key functional components used in automobiles is piston rings¹, and Hitachi Metals is the world’s leading manufacturer of stainless steel piston ring materials². The Company keeps pace with the growing demand for steel piston rings at its Yasugi Works in Shimane Prefecture, Japan, where it manufactures stainless steel piston ring materials. Piston rings made of these materials are noted for their particularly high strength among the various types of steel piston rings on the market. The materials themselves consistently earn stellar evaluations for their fine performance and quality, with demand expanding and production volume rising for use as environmentally compatible products in vehicles of all size classes. As the need for products with improved environmental performance grows, demand for high-grade and high-performance materials for stainless steel piston rings is forecast to surge over the years to come. This is particularly true for China, where unit production and sales of these components are increasing.

2. Overview

Hitachi Metals, in gearing up to address the expanding market and needs in China, has now reached the decision to establish a production base for high-quality, high-performance stainless steel piston ring materials in the Suzhou region of that nation.
Supporting the integrated piston ring materials production system advanced at Hitachi Metals’ Yasugi Works to date, the new China base will handle the rolling, heat treatment, and other processing of steel products made at Yasugi. This new China operation will be instrumental in launching a two-pronged production system spanning Japan and China. The introduction of this new base will be used to expand supply capacity, shorten delivery schedules, and strengthen technical service to China and other high-growth markets in a redoubled push to cater to the robust demand in such nations.
Aiming to reduce management costs and shorten lead-time heading toward mass production, this piston ring materials production base will be located inside Hitachi Metals (Suzhou) Technology, Ltd., a company active in the production of multilayered devices and target materials.

In its Fiscal 2012 Medium-Term Management Plan, Hitachi Metals declared its Global 50 plan (which aims for global business expansion, a reorganization of production structure, and a restructuring of business segments and product portfolio). Over the years to come, Hitachi Metals will continue to search out markets in all corners of the world, forging ahead with its defined mission to achieve sustained growth and success as a global company.

3. Investment Capital

Approx. ¥2.0 billion

4. Sales Targets

Fiscal 2012: ¥1.2 billion/year
Fiscal 2015: ¥2.0 billion/year

5. Company Profile

(1) Name		:	Hitachi Metals (Suzhou) Technology, Ltd.
	(Named changed from Hitachi Metals (Suzhou) Electronics, Ltd. on August 1, 2010)
(2) Location		:	220 Xing Ming Street, Suzhou Industrial Park, Suzhou, Jiangsu Province, China
(3) Date Established		:	June 6, 2001
(4) Capital		:	159.816 million yuan (approx. ¥1.9 billion) (100% equity by the Hitachi Metals Group)
(5)	Chairman	:	Keiro Miyamura
(6) President		:	Junichi Numata
(7) Vice President		:	Yoshiki Masugata
(8) Production Line		:
	- From FY2001: Multilayered devices and isolators (telecommunications components for cell phones, etc.) - From FY2010: Target materials (liquid crystal display panel wiring materials) - From FY2011: Piston ring materials (mass production scheduled to commence January 2012)

Press Inquiries:

Akio Minami
Corporate Communications Office
Tel. +81-3-5765-4079

Customer Inquiries

Ryosuke Yasuda
Specialty Steel Company
Tel. +81-3-5765-4401


Reference: Explanation of Terms

1.	Piston rings are ring-shaped metal pieces placed between the pistons and cylinders of automobiles, motorcycles, and other machinery. These components are indispensable for internal combustion engines due to their sealing capacity, friction reduction through engine oil control, cooling through piston heat conduction, and other outstanding performance features.
2.	Piston rings are made primarily of cast iron and steel (stainless steel, silicon-chromium steel, and carbon steel). Reflecting the move toward higher-performance engines targeting greater fuel efficiency and lower carbon dioxide emissions, the current market demand is characterized by improved product strength and wear resistance, and the shift from cast-iron to steel piston rings is being accelerated.

news release PDF 130KB

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