Established in Shanghai by affiliate of Tokyo based SK Cylinder, Kanto Koatsu-Yoki Manufacturing; Shanghai SK Cylinder produces small, general purpose seamless steel cylinders.
In November 2006, the company obtained authorisation as a Chinese producer of cylinders for export, and began gradually exporting to Japan from May 2007.
The move to begin exporting to Japan came as Chinese made cylinders, including fire extinguisher cylinders, were starting to enter the Japanese market.
The SK Group chose to establish a new production company so that it could shift some of its production over to it.
“Starting in 2007, we have been importing 20,000 to 30,000 cylinders a year from them, selling them to customers who purchase in large quality,” said Norio Kondo, Vice President of the SK Group.
The new plant has the capacity to produce 10,000 cylinders a month in the 1-20 litre range.
The steel used for the cylinders is imported from Japan, and the cylinders will be manufactured to the same production standards as they have been at another one of the group’s plants in Maebashi.
The installation of the valves, as well as the inspection of the quality of the external and internal surfaces will be conducted at the Maebashi plant, after which the cylinders will be put on the Japanese market.
Kondo continued, “The SK group has decided to have 60% of the small seamless steel cylinders produced by the group manufactured at Shanghai SK Cylinder, while their Maebashi plants will specialise in the manufacture of cylinders for use in the semiconductor sector and of added value products.”
Shanghai SK Cylinder is already producing cylinders in accordance with the Japanese High Pressure Gas Safety Law, and has also obtained the Chinese GB Standard.
In addition to these, they also plan to obtain overseas qualifications such as the Korean KS and the US DOT qualifications, and then expand sales in Southeast Asia and the Middle East.