UPDATE 1-Japan's steelmakers to double capacity abroad - Nikkei

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Wed Jan 26, 2011 1:46pm EST

Jan 27 (Reuters) - Japan's four largest steelmakers plan to double combined overseas output capacity for high-quality automotive steel to 13 million tons by 2013, the Nikkei reported.

Nippon Steel Corp (5401.T), JFE Holdings Inc (5411.T) unit JFE Steel Corp, Sumitomo Metal Industries (5405.T) and Kobe Steel (5406.T) intend to spend up to 400 billion yen to expand facilities, the business daily said.

Overseas production is expected to surpass Japan's domestic output of automotive steel, down from a peak of 11.42 million tons in 2007, the Nikkei said.

Nippon Steel is set to double production capacity in Brazil by March, and start its Indian and Mexican joint-venture plants in 2013. Nippon's overseas production capacity will rise more than 40 percent, the paper said.

JFE Steel plans to increase its overseas output capacity 230 percent to roughly 2.6 million tons, by expanding its Chinese joint-venture plant next year and setting up a new facility in Thailand, the Nikkei said.

Kobe Steel is set to establish joint-venture facilities in the United States and India, while Sumitomo Metal is moving to build a Vietnamese facility, which will also produce steel for home appliances and other products, the paper reported. (Reporting by Aditi Sharma in Bangalore; Editing by Don Sebastian) ((aditi.sharma@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aditi.sharma.reuters.com@reuters.net))

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