jfe global strategy for automotive market: mr keiji nishimura

Copyright © 2015 JFE Steel Corporation. All Rights Reserved.

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JFE Global Strategy for Automotive Market

JFE Steel Corporation

18th of November, 2015

International Conference on Green Manufacturingthe Future of Steel and Automobile 2015


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World’s 10th largest in crude steel production

1 Arcelor Mittal 6 POSCO2 Nippon Steel & Sumitomo Metal 7 Shagang (China)3 Hebei (China) 8 Ansteel (China)4 Bao (China) 9 Shougang (China)5 Wuhan (China) 10 JFE

Outline of JFE Group

JFE Holdings, Inc.(Holding company)

JFE Shoji Trade Corp.

JFE Steel Corp.

Japan Marine United Corp.

JFE Engineering Corp.

JFE Group was established by merger of Kawasaki Steel and NKK in 2002.JFE Steel is a wholly-owned subsidiary of JFE Holdings, Inc.

World crude steel production ranking in 2013 (Consolidated) （Source: WSA）


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Production sites were combined into 2 large Integrated Steel Works + 1 Steel pipe Work for improved effectiveness and efficiency

West Japan Works●District:Fukuyama & Kurashiki- Crude steel production (FY 2012): 19.9 million Mt/y-Major products:: sheets, plates, electric steel sheets, pipes, wires & rods, and shapes

West Japan Works●District:Fukuyama & Kurashiki- Crude steel production (FY 2012): 19.9 million Mt/y-Major products:: sheets, plates, electric steel sheets, pipes, wires & rods, and shapes

Chita Works- Steel pipe works- Steel pipe production

(FY 2012): 630 k Mt/y

Chita Works- Steel pipe works- Steel pipe production

(FY 2012): 630 k Mt/y

East Japan Works●District:Chiba & Keihin- Crude steel production (FY 2012): 8 million Mt/y- Major products: sheets, stainless steels,

plates, pipes and iron powders

East Japan Works●District:Chiba & Keihin- Crude steel production (FY 2012): 8 million Mt/y- Major products: sheets, stainless steels,

plates, pipes and iron powders

Outline of JFE Steel


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SteelSteelSteelSteel

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Cost Performance（Index*）Cost Performance（Index*）Cost Performance（Index*）Cost Performance（Index*）

Steel is the right material for Auto

Concentration on Steel rather than Non metallic light weight materials

Stable Supply with large volume

Global Suppliability

Other Steel Advantages

High Recycle ratio

Weldability

Repairability

Excellent Formability

AHSS (Transformation Strengthening)

*Specific Strength/Cost

JFE’s Strategy

Note) ABCDE: Non metallic light weight materials

Class A Surface Quality (After Paint)

Better


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Source:WAS AHSS guidelines V 5.0

Steel Advantage: Basic Characteristics- Broad Range of TS Line up -

Mechanism of Strengthening based upon “Metallurgy”

Solid SolutionC,Mn,P

PrecipitationTi,Nb

TRANSFORMATIONFerrite,Martensite,Bainite,Pearlite

Retained Austenite,etc.


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Our Automotive Customers

AmericanAsianEuropean

- TOYOTA- NISSAN- HONDA- MITSUBISHI- SUBARU- SUZUKI- MAZDA- ISUZU- DAIHATSU- HYUNDAI- KIA

- VW- PEUGEOT- CITROEN- FIAT

- GM- FORD

Supply to all Japanese OEMs Expand to Non-Japanese OEMs


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Converter

BF

RH CC

Rolling & Finishing

Virgin Metal from BF and Converter

Combination of Advanced Technology & Patent

Long-term Business Relationship

Product Strategy for Auto


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Product Line up for Auto

By providing all kinds of steel products● Provide sophisticated products for our customer● Acquire stable position as a supplier

Provide all Steel Products for Automotive Applications

Pipe Iron PowderBar Silicon SteelStainless

Sheet & Strip Products-Hot Rolled Products-Cold Rolled Products-Coated Products

CarbonSteel


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270-440 (BH)Exposed

Reinf.780-1180 (PHS)

Side Outer 270-440 (EDDQ)

590-980Cabin

Energy Absorption

980-1470 (PHS)

TS (MPa)BIW/Closure/Bumper

440-980MPa(Hole Expansion/Fatigue/Anti-corrosion)

Chassie

Hood Outer:( Excellent Surface Quality,Anti-Dent & Chipping/Rigidity)

Reinf.(Anti-Crush)

Hood Inner(Formability)

High Energy Absorption

Door Outer(Excellent Surface Quality,

Anti-Dent & Distortion/Rigidity)

Side Panel Outer(Formability/Anti-Dent)

Cabin(Anti-Crush)

Fender(Deep Drawability)

Roof (Formability/Rigidity)Trunk Lid

(Formability/Anti-Dent)

Full Product Line-up for Auto Applications- Suitable material for each part’s requirements -


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ProductionEngineering

Driving on the Road

Designing Material Engineering

TrialProduction

【Vehicle design & manufacturing process】

【 Products 】【Support for Design】

Stamping

SimulationStamping TestCrash Simulation

High Speed Tensile Test

High Speed Crash Test

JFE’s Early Vendor Involvement activities- Co-Work with OEMs -

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Tensile Strength (MPa)

Elo

ngat

ion

(%) IF

BH

Low C SolutionHardened

Residual γSteel

Bainite

BH-T

Dual Phase

Precipitation Hardened

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Total Solution for Automotive Customers

Design CommercialProduction


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Global Supply Bases for Automotive Customers

(1) Asia/Oseania: Production on site (2) EU/USA: Technical Alliance

Production Sites Technical Alliance

China:GJSSGuangzhou JFE Steel Sheet

IndiaJSW Steel

Indonesia:JSGIJFE Steel Galvanizing Indonesia (2016 SOP)

Thailand (Cold Rolled, Galvanized)Thai Cold Rolled Steel Sheet (TCRSS)JFE Steel Galvanizing Thailand (JSGT)

GermanyThyssenKrupp

USAAK Steel

JFE’s Ｇlobal Strategy


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香港香港香港香港

広州広州広州広州

上海上海上海上海

長春長春長春長春

北京北京北京北京

大連大連大連大連

*

GJSS：広州JFE鋼板- Guangzhou JFE Steel Sheet Company LTD -

Place Nan sha district, GuangzhouSOP April, 2006 (No.1 CGL)Facilities &Capacity

(1) PL-TCM：1.8 mill. MT/y., 2011(2) CAL：1.0 mill. MT/y., 2011(3) No.1 CGL：400 k MT/y., 2006

No.2 CGL：400 k MT/y., 2012Products CR・GA・GI steel sheet for automotive Shareholders

JFE Steel Corp. 50%, Guangzhou Steel Sheets Co., Ltd. 50%


ConfidentialFacility Overview

Galvanized Steel Sheet800 k Mt/year

Cold Rolled Steel Sheet1 mill. Mt/year

PL-TCM(1.8 mill.Mt/y)

#1 CGL(400 k Mt/y)

#2 CGL(400 k Mt/y)

CAL(1mill. Mt/y)

Phase I Phase II

Jul.2011Mar.2006

Total Capacity1.8 Million Mt/year


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Main Spec.・Capacity：1,800,000 t/Y・Thickness：0.3-2.6mm ・Width：800-1850mm・Type of Mill：4 Stands, all 6 Hi

Hot Rolled Sheet

Pickling

2～～～～6mm

Cold RollingScale

0.3-2.6mm

Welder

Pickling Tank Tandem Cold MillTrimmer Carousel Reel

Pay-off Reel Running direction1 2 3 4

PL-TCM (Pickling Tandem Cold Mill)


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Running direction

Oiler

Inspection

GalvannealingFurnace

AnnealingFurnace

TensionReel

CleaningSection

EntryLooper

Welder

Pay-Off ReelZinc pot

Skinpassmill

Chemical treatmentTrimmer

ExitLooper

Wiping

Main Spec.・Capacity：400 k MT/Y・Thickness：0.5-2.3mm ・Width：800-1700mm・Products：GA＆GI , HR-GA＆GI, ・Major Product mix- GA & GI for Automotive Outer Panel- Highly lubricated GA- Hot Rolled GA＆GI - High tensile steel GA&GI

No.1 CGL (Continuous Galvanizing Line)


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Running direction

Oiler

Inspection

GalvannealingFurnace

AnnealingFurnace

TensionReel

CleaningSection

EntryLooper

Welder

Pay-Off ReelZinc pot

Skinpassmill

Chemical treatmentTrimmer

ExitLooper

Wiping

Main Spec.・Capacity：400 k MT/Y・Thickness：0.4-2.6mm ・Width：800-1850mm・Products：GA＆GI, HR-GA＆GI, ・Major Product mix- GA for Automotive Outer Panel- Hot Rolled GA＆GI- High Tensile Steel GA&GI

No.2 CGL (Continuous Galvanizing Line)


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Steel

Fe-Zn Layer

Tool Avoid Stick with Thin Oxide Layer on Fe-Zn Surface

Widely received by OEMs in the globe

Environment – Friendly(No metallic elements contained)

Highly Lubricated GA

Travel


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17

Running direction

Rapid CoolingHeating

ExitLooper

Temper Mill

TrimmerOiler

2nd

Cooling

EntryLooper

CleaningPay-offReel

TensionReel

Welder

Main Spec.・Capacity：1 Million MT/Y・Thickness：0.3-2.6mm ・Width：800-1850mm・Features：- Wide range of Size Availability- Major Product mix

*Automotive Outer Panel*Deep drawing*High Tensile Steel

CAL (Continuous Annealing Line)


ConfidentialThe supplier awards2013 Nissan2013 Nissan2013 Nissan2013 Nissan

2012 Honda2012 Honda2012 Honda2012 Honda

2014 Honda2014 Honda2014 Honda2014 Honda

2013201320132013・・・・2014 GAC MOTOR2014 GAC MOTOR2014 GAC MOTOR2014 GAC MOTOR


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2006200620062006 2008200820082008 2010201020102010 2012201220122012 2014201420142014

Rapid Sales Growth for Auto


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JSGT- JFE Steel Galvanizing (Thailand) Ltd . -

Thailand’s 1st CGL for Auto

Thickness:0.4-2.3mmWidth:800-1880mm

Size Availability

Place Rayong ProvinceSOP April, 2013Facility CGL：400 kMT/Y & RCLProducts GA steel sheet for auto

-Outer & Inner panel-High Tensile Steel

Capital JFE Steel Corp. 100%

HemarajEastern

SeaboardIE

Ayutthaya

BangkokToyota

Nissan

Honda

Mitsubishi

Isuzu

Suzuki

AAT

Ford

GM

� Good access to customers� Stable utility supply

Location: Hemaraj Eastern Seaboard Industrial Estate

SiamSeaport

●●●●

Bangkok


ConfidentialJSGI- PT.JFE STEEL GALVANIZING INDONESIA -

Indonesia’s 1st CGL for Auto

Thickness:0.4-2.3mmWidth:800-1850mm

Size Availability

Place Kota BekasiSOP March, 2016 (planned)Facility CGL：400 kM t/yProducts GA steel sheet for auto

-Outer & Inner panel-High Tensile steel

Capital JFE Steel Corp. 100%

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Market Growth


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To expand strategic collaboration with JSWIndia’s Major Steel Maker

- CRM:2.3 mill. MT/y - CAL:950 k MT/y x 2- CGL:400 k MT/y

VijayanagarSteelworks

Headquarters in Mumbai

JFE is providing Technical Assistance for the operation

JFE Announced on Aug. 2012Licensing technology to JSW

in Auto Steel

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Source: Marklines


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Technical Alliance in Auto

Long-term Technical Alliance- More than 10 years -

★ Global Supply of High-End products★ Joint R & D★ Technical Transfer★ EVI etc.

Germany USA


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ENDThank you for your kind attention

jfe global strategy for automotive market: mr keiji nishimura

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