Nippon Steel To Hurry Overseas Production As Trade Barriers Rise
13 October 2016
Nippon Steel & Sumitomo Metal aims to move up the start of mass production at automotive steel mills abroad to combat the effects of anti-dumping duties and other restrictions that target Chinese exports.
President Kosei Shindo spoke to reporters in Dubai, where he attended the annual conference of the World Steel Association through Tuesday. He met with Lakshmi Mittal, CEO of European steel group ArcelorMittal, as well as leaders of business partners including India's Tata Steel.
The global environment for steel companies is "very bad," Shindo said, and now is "the time to persevere."
The Chinese glut in steel products and the country's low-price exports have prompted many markets to put up trade barriers. Nippon Steel intends to obtain faster automaker certification on its products, with plans to make more items where they are used rather than export from elsewhere.
Shindo seems to have multiple locations in mind. One could be India, where the company has a joint business with Tata Steel, and Thailand also may be a possibility.
The president cited the Group of 20's efforts to address steel overcapacity in China via a global forum. The steel association should offer support, Shindo said, as "we must organize and collect trustworthy data, and share our streamlining know-how with the Chinese."
Source : nikkei.com