Nippon Steel & Sumitomo Metal Corp. will establish a new plant in China to boost its production capacity for cold heading wire there by sixfold.

The firm plans to improve supply of the wire, used for important automotive materials such as bolts and bearings, to Japanese carmakers in China.

The new plant is being built in Suzhou, Jiangsu Province, together with partners including Toyota Tsusho Corp.

With a total investment of ¥3.2 billion, the plant will start operations in June 2015 with an annual capacity of 42,000 tons.