Steel Service Centers Supporting Manufacturing Worldwide

Sumitomo Corporation began operating SSCs near customers' manufacturing sites in Japan in the 1960s, supplying steel sheets just-in-time. In the 1970s, as Japanese customers actively moved their manufacturing bases overseas, the same services were demanded at these new locations. This marked the beginning of Sumitomo Corporation's global expansion of SSCs.

Currently, there are 26 companies and 50 locations operating SSCs in Japan, China, Southeast Asia, North America, and Europe. The annual steel sheet processing capacity reaches approximately 7 million tons.

This business fully leverages the Sumitomo Corporation Group's technological capabilities, financial strength, comprehensive capabilities, network, and management skills. These include the ability to respond quickly to diverse customer needs, financial strength demonstrated through investments in operating companies and inventory burden reduction, comprehensive capabilities through collaboration within the group (including other business divisions), network strength for developing new clients, and organizational management skills shared among many operating companies. The strengths of a general trading company are utilized in various ways.

In recent years, global automobile production has continued to increase annually, with forecasts suggesting that the annual production of about 92.5 million units in 2024 will grow by several percent each year, reaching 100 million units by 2027. Not only is the number of vehicles increasing, but the required environmental performance levels for automobiles are also rising each year, such as improving fuel efficiency through weight reduction. Production of new types of vehicles, such as EVs, PHEVs (plug-in hybrid vehicles), and fuel cell vehicles, is also expected to expand.

The mission of SSCs going forward is to continue providing high-quality services while responding to customers' increased production and technological innovation. In mainstream ordinary steel sheets, it is necessary to contribute to the development of new-era manufacturing by processing, pressing, and welding high-tensile steel sheets (which are difficult to process), and utilizing non-ferrous metals such as aluminum.

Even as the nature of manufacturing changes, the functions of inventory, processing, supply, and finance at the heart of the manufacturing value chain will continue to be required. By responding to changes in required materials and processing methods, and seeking collaboration with other business divisions within the group and leading partners in the industry, SSCs will enhance their functions and contribute to manufacturing worldwide.