OSG is to increase 30% thread taps capacity in Taiwan. With an investment capital of JPY 4 billion, it will build a new plant in Kaohsiung City (Taiwan) to raise monthly taps capacity from 450 to 600 thousand pieces. It will increase production of nut taps to cope with the large demand in the automotive and construction industries, and use the plant as a base to export to the U.S., Europe and Asia.
OSG's third plant in Taiwan will start construction this year. The plant will monthly produce 200 thousand pieces of scrap-free thread taps, 170 thousand pieces of nut taps, with the remaining being other taps. The nut taps to be produced in Taiwan account for 7% of OSG's global nut tap production (250 thousand pieces). Therefore, the new plant will mainly increase nut taps production and export to Canada, Italy, India, Turkey and China.
OSG will plan an equipment investment worth JPY 22 billion. It will build a new plant in Aichi Prefecture (Japan) coping with small-batch special products as well as mass-produced products, and increase taps capacity in Mexico and Germany.