Japan-based steelmaker Kyouei Steel announced on March 19 that it plans to expand its rebar production in the US. The company plans to construct a new building at its existing facility in Texas and move production from the aging plant to the new structure by 2027. The expansion will require a total investment of approximately US$230 million (JPY 34.5 billion).
The new plant will have an annual steel production capacity of 300,000 tons, a 20% increase over the current capacity. The plant's production focus will be on reinforcing bars, which are widely used in the construction and civil engineering industries. With this investment, Kyoei Steel aims to meet the rapidly growing demand for infrastructure development in the US.
Kyoei Steel's US operations will be further strengthened by local steelmaker Vinton Steel, which became a subsidiary of the company in 2004. The company melts steel scrap using electric furnaces to produce bar-shaped steel products, mainly used as rebar. As the main production facilities in Texas are aging, the company plans to build a new building and upgrade the equipment.
Demand for rebar in the U.S. is growing rapidly as the country approaches a period of renewal of highways and other transportation infrastructure. This is the basis for Kyoei Steel's expansion plans in the US.
Kyoei Steel is the largest rebar supplier in Japan. However, due to the declining population in Japan and other factors, there are no significant growth prospects in the construction industry. The company is therefore looking for new opportunities abroad and aims to expand its operations in Vietnam as well as the US.
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