Posted on 02 Oct 2015
JFE Steel began trial production this summer at a Thai facility of a superstrong steel nearly twice as robust as regular high-tensile steel. Up to now, the company has exported the steel from Japan. The JFE Holdings unit is expanding orders from large automakers, aiming to achieve an annual output on a scale of tens of thousands of tons.
Ultrahigh-tensile steel, used in auto frames, is thinner than the conventional material for automobiles, but packs the same durability and thus lessens the load on cars. Automakers have begun using the material in Japan and are considering adopting it in Asia, where emissions standards are set to tighten.
By starting local production, the Japanese steelmaker aims to shrink delivery times and meet demands for quality and volume. It also plans to start manufacturing the steel in China.
Nippon Steel & Sumitomo Metal is preparing to make its ultrastrong steel at a Chinese plant jointly owned with China's Baosteel that went online this fall.
Japanese companies are also busy stepping up local production of rubber used in fuel-efficient tires. In 2016, Zeon will double annual output capacity of solution-polymerized styrene butadiene rubber to 70,000 tons at its Singapore facility. JSR will also double production capacity at its Thai factory to 100,000 tons the same year.
Asahi Kasei already doubled output capacity of S-SBR rubber at its Singapore factory to 100,000 tons in May, but is thinking of beefing up overseas production mainly in Asia. S-SBR rubber boosts fuel efficiency by reducing rolling resistance on tires.
Sekisui Chemical is looking to manufacture interlayer film for auto glass in Suzhou, China. The film makes the front windshield thinner, reducing a car's weight.
Emerging Asian countries like Thailand and Indonesia are introducing incentives to promote eco-cars, but the requirements for cars to qualify for the programs are expected to become stiffer. The adoption of green materials used in more developed countries will determine whether an automaker will remain competitive in those markets.
Softening economies have pushed the Asian car market below industry expectations. Yet Japanese automakers foresee resilient demand for fuel-efficient cars due to government incentives and are leaning toward expanding overseas production along with materials companies.
