Nippon Steel is to set up a factory in Thailand to make wire rods for vehicle bolts in cooperation with six other Japanese firms, including Toyota Tsusho, the Toyota group’s trading unit.
Kyodo News said Japanese automakers’ growing production in Thailand prompted the steel maker to establish Nippon Steel Bar & CH Wire (Thailand) in December, which will become operational as early as July 2007.
Investment will total about 1.85bn yen and the plant will have annual production capacity of about 40,000 tons of wire rods, the company told the news agency.
The Thai factory will be the second Nippon Steel facility overseas making wire rods for bolts. The company already has a plant in Suzhou, China.