Yamato Kogyo Plans 4-time Larger Capex for F2008

Yamato Kogyo, Japanese major electric furnace steel maker plans to invest 27.2 billion yen through fiscal 2008 ending March 2009. The planned capex is larger by 4 times than fiscal 2007. The firm will invest 24.2 billion yen for Siam Yamato Steel, a subsidiary in Thailand. Siam Yamato Steel is constructing No.2 works, which will complete by mid 2009, and the subsidiary’s total capacity will expand by 400,000 tonnes to 1.1 million tonnes. The firm plans to invest 1.5 billion yen for Yamato Steel, a subsidiary in Japan, and 1.2 billion yen for YK Steel in South Korea to improve productivity and reduce costs.

Siam Yamato Steel produces H-beam, sheet pile, channel, angle and I-beam. The half-year revenue was 33.7 billion yen for April-September 2008 when the subsidiary kept full operation at No.1 works with stable demand in Asian region. The firm will integrate large size products into No.1 works and small-mid size products into No.2 works for better productivity.

Yamato Steel established a new warehouse in September 2008. Yamato Kogyo group aims to expand production capacity in Asia and enhance overseas business.

Siam Yamato Steel increased the sales volume by 6% in 1H of F2008 from the same period of F2007. YK Steel increased the sales volume by 4.9% and Yamato Steel by 2.1%.