Sanyo Special Steel Co. Ltd. (Japan; Tokyo: 5481) announced it is boosting output of 52100 seamless tube and other seamless tube suitable for producing bearings. The target increase is 10% by second quarter 2007.

The bearing industry is an important segment of Sanyo's customer base; for that market, it produces tube, bar and rod.

As long ago as early 2005, Sanyo said it had been experiencing a long-term upswing in demand for bearing steel. This latest round of investment will be at least USD $28 million, adding more than 144,000 tons capacity to its flagship Hyogo mill.

The added capcity will focus on thinwall tube sizes used in manufacturing high-volume automotive size bearings. This generally refers to bearings with a finish OD under 3 inches.

Sanyo is Japan's fourth-largest steel producer. It is also a 31% joint venture partner with Timken in Advanced Green Components, set up to produce blanks for tapered roller bearings.

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