“SK Corporation of Shanghai, the seamless cylinder manufacturing plant of SK Cylinder in China, has recently constructed an additional manufacturing plant on the grounds of its existing plant. This will be used as a cutting plant as well as a place for storing materials. The materials testing room at the existing plant was expanded. For inspecting cylinders, in addition to the ultrasonic testing unit (UT) already in use, a new magnetic testing (MT) unit was installed. Along with improving the quality control setup, the production capacity was expanded from the previous 10,000 units a month to 12,000 units a month. In addition to its markets in Japan, Korea, and China, the company is expanding its ability to supply markets in Taiwan and Southeast Asia, as well as in the US. It is because of this that the company has further improved the quality control of its products and increased its production capacity.

SK Corporation of Shanghai was established in April of 2005 in an industrial part located in a suburb of Shanghai, and capitalized at 30 million. As of February of 2006, the year following its foundation, it began producing seamless steel cylinders with capacities of 1 liter and 1.25 liters for use as fire extinguishers. In June of that year it acquired the ability to produce 3.4 liter cylinders while in the summer of 2008 it brought in heat treatment facilities and set up facilities to produce cylinders with a capacity of over 10 liters. Currently its production capacity for cylinders ranging from 0.8 liters up to 20 liters amounts to 12,000 units a month. The entire facility consists of one plant which has a testing room for materials, and inspection facilities, and another plant which has a facility for hot forging, and now the new plant. About 50% of the units produced are for the Japanese market, 30% for the Korean market, 10% for the Chinese market, and 10% for other areas.

Regarding the aim of the expansion, Vice President Norio Kondo noted, “Japanese gas producers and major gas distributors which are most of our clients in Japan are moving into China, Korea, and Taiwan, as well as into the ASEAN countries, India, and also the US and Europe. There are no Korean cylinder producers in the Korean market so that during the past 3 years we have been supplying this market on the order of 30,000 high quality cylinders a year. Cylinders produced in China have appeared in all of the markets. Taking full use of the advantages in terms of cost cylinders produced in China, we can offer prices in line with those of Chinese producers. We plan to put effort into development of the market in the US where Chinese manufacturers are especially moving in.” The company, in addition to obtaining the KHK certification, has also obtained the Chinese GB certification, and the Korean KS certification as well as the US DOT certification. It is also in the process of arranging for dealing with double specs. The development of markets in the US and Southeast Asia will now be major issues for the company.”