Mitsubishi Steel Manufacturing Group to strengthen Springs business in India

Company

2024/04/09

In anticipation of future market growth, the Mitsubishi Steel Manufacturing Group plans to strengthen its Springs business in India, one of its international business bases, as outlined below.

(i) Enhancement to production structure at Indian joint venture

Group equity method affiliate Stumpp Schuele & Somappa Auto Suspension Systems Pvt. Ltd. (Bangalore, Karnataka, India; “SSSSS” hereinafter) at Chennai Factory will enhance its production structure. Established in 2014 as a joint venture between Mitsubishi Steel Mfg. Co., Ltd. and an Indian springs maker (Stumpp Schuele & Somappa Springs Pvt. Ltd.), this affiliate has since responded to growing overseas production by its key automaker clients and the associated demand for local procurement. The decision to enhance production facilities was made in response to India’s rapidly growing market for new vehicles against a backdrop of increasing population—on the verge of becoming the world’s largest—and income growth. India’s market is now the world’s third largest, after it succeeded that of Japan in 2022. Plans call for the enhanced production facilities to be completed by July 2024, with production capacity expected to double.

(2) Commencement of production and sale of springs for railway car at MSM SPRING INDIA PVT. LTD.

Mass production of springs for railway car has been commenced at the Mitsubishi Steel Manufacturing Group consolidated subsidiary MSM SPRING INDIA PVT. LTD. (Chennai, Tamil Nadu, India; “MSM-SI” hereinafter). To date, MSM-SI has built up a strong reputation for its technologies and quality, which led to acquisition of orders of these products. This business will also meet needs for local procurement under the Indian government’s Make in India policy. Customer approval had been obtained already and full-scale production commenced from March 2024. Established in 2014 to produce and sell the Group’s large coil springs for construction machinery, MSM-SI delivers products primarily to Japan-affiliated construction machinery makers operating in India. This will mark its first attempt to produce and sell springs for railway car.

The Group will maintain efforts to improve its technologies and quality while advancing proactive activities to grow sales as it meets the needs of its customers in the India business.