Japan Steel Makers Refer Employment Adjustment Subsidy

Many Japanese steel makers will prefer Employment Adjustment Subsidy (EAS). Stainless steel maker, Nippon Kinzoku already preferred. Nippon Steel and Sumikin Stainless Steel (NSSC) and Nippon Metal Industry will prefer soon. Common steel makers, special steel makers or secondary processing makers are also proceeding with the preparations of application. Japanese steel makers have preferred EAS in 1999 when steel demand dropped significantly.

Nippon Kinzoku preferred EAS for Itabashi works and Gifu works. NSSC are proceeding with the preparations of the application in Hikari works, Kashima works and Yawata works. Nippon Yakin Kogyo and the firm’s subsidiary, YAKIN Kawasaki decided the application.

Steel makers are forced in significant output cut due to dropped demand, which is cutting the output of cold-rolled stainless steel sheet by 50% from same period of last year.

NSSC expects to receive EAS in April when the firm halts the operation of 4 rolling mills in Hikari works and Kashima works for 6 months from February. Nippon Yakin Kogyo temporary halts the operation of YAKIN Kawasaki for 2-3 days per month after the mid of January, which mulls the enlargement of down period. Nippon Kinzoku Kogyo don’t renew employment contract at 40 peoples of the subsidiary.

Electric furnaces for common steels will refer EAS when they are cutting the output by 50% from the same period of last year. JFE Bars & Shapes Corporation will refer EAS in Kashima works, Himeji works and Sendai works within January. Godo Steel will refer in Osaka works and Himeji works in February and in Funabashi works in March. Topy industries, Tokyo Tekko, Kyoei Steel and Nakayama Kogyo are mulling to refer.

Special steel makers such as Hitachi Metals or Daido Steel are kicking around application. Each special steel maker is forced in decreased output when automobile output is reducing significantly due to world recession. Other special steel makers are expected to refer EAS when Toyota Motors announce to cut the output by 40% in January-March from the same period of last year.