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“This is a major investment for capacity increase following the third hot-dip galvanizing line, which was put into operation in 2010,” the Japanese steelmaker said on Thursday September 5.

The new line is capable of producing 420,000 tpy of high-grade galvanized steel sheet and will be built on a neighbouring site to the existing lines in their joint venture, Baosteel-NSC Automotive Steel Sheets (BNA), which operates within the compound of Baosteel in Shanghai.

The new line is slated to start operating in 2015.

Though similar in type to BNA’s existing first and third hot-dipped galvanizing lines, it is additionally capable of manufacturing advanced high-strength steel.

The move is to meet growing demand for galvanized steel sheet for automotive use mostly from Japanese automakers further building up their capacity in China. The expansion is also in response to automakers’ need for advanced high-strength steel to build lighter cars for better fuel economy, with automotive demand expanding in the country, NSSMC said.