Yongjin Metal rapidly expanding capacity for higher future demand, but faces wea

2023-09-21

Yongjin Metal continued to expand its STS capacities in China and Vietnam successfully but had to suspend some other plants due to insufficient local demand.

The company has recently announced the progress of its stainless steel expansion campaign, which is expected to increase its production capacity by 1.1 million tpy. The plan involves four projects in different locations.

Guangdong Yongjin's third phase, with an annual capacity of 350,000 tpy of wide-width precision stainless steel sheet and strip, was put into operation in July 2023.
The project aims to produce high-quality STS products with a width of up to 2,000 mm, which can meet the needs of various industries such as shipbuilding, petrochemicals, construction, and machinery.

Gansu Yongjin (220,000 tpy of precision stainless steel sheet and strip) project phase one has been put into trial production in August 2023, and later, it will add another 80,000 tpy of BA product capacity.
The project focuses on producing bright annealed (BA) stainless steel products with a 0.1-0.5 mm thickness, which can be used for high-end applications such as electronic components, medical devices, and aerospace equipment.

Zhejiang Yongjin relocation project, with a processing capacity of 195,000 tpy of ultra-thin precision STS sheet and strip, is planned to be put into production before the end of the year.
The project is located in the new industrial park of Jiaxing City, Zhejiang Province, which has convenient transportation and abundant resources.
The project will produce ultra-thin precision stainless steel products with a thickness of less than 0.1 mm, which can be used for advanced applications such as flexible displays, batteries, and sensors.

Vietnam’s second plant (annual processing of 260,000 tons of precision stainless steel strip) phase one has started construction in the first half of 2023 and is expected to be put into production in the second quarter of 2024.
The project will produce precision STS strip products with a 0.3-1.2 mm thickness, which can be used for general applications such as home appliances, kitchenware, and furniture.

The company stated that the expansion would help it meet the growing demand for precision STS products in various industries, such as automotive, home appliances, medical equipment, and electronic devices.

However, the Asian market is not strong enough to absorb additional volumes. As a result, the company revealed that it had terminated its Indonesian project and temporarily suspended operations at its Jingjiang mill due to the weak domestic STS demand. The company said that it will focus on the operations of its new projects, which are expected to bring more benefits and competitiveness to the company in the long term.

By the end of June 2023, Yongjin Metal’s total capacity amounted to 2.4 million tpy. There were no expansion projects launched during H1 this year.

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