Japan-based Daido Steel plans to improve stainless steel production capacity at Chita 2 factory in Aichi prefecture. The company commenced operations at Chita 2 in March to supply high-value-added products to the functional materials market.
The newly commissioned plant will produce 1,000mt/month of stainless steel bars for the automotive industry. Daido Steel has invested $27.57mn for the new plant. Chita 2 factory is a new facility built at a site acquired in September 2019.
Daido plans to focus on increasing production capacity despite a drop in automotive steel demand in Japan as well as in the global market. The steelmaker will install a new stainless steel bar peeling facility equipped with a heat treatment furnace and an ultrasonic flaw detector to supply high quality stainless steel auto parts.