Nippon Steel’s New President Seeks Larger and More Global Operation

Nippon Steel’s new president Shoji Muneoka said at interview with Japan Metal Bulletin the firm seeks sustainable growth as a global player. He said the firm expands the raw steel output to more than 40 million tonnes while the firm expands the offshore business to serve offshore buyers and transplants of Japanese manufacturers. He said the firm tries to improve the cost structure under extremely higher raw materials cost while the firm tries to improve the steel selling price. Mr. Muneoka said the firm increases the steel output to 40 million tonnes including steel source purchase from alliance partners after expansion of a blast furnace at Oita works in first half of 2009. He launches study to expand the output level to more than 40 million tonnes. Mr. Muneoka said the firm decided the expansion of continuous galvanizing line at the joint venture, Baosteel-NSC/Arcelor Automotive Steel Sheet of China and Unigal of Brazil. He said the firm and Arcelor Mittal will decide expansion of the continuous galvanizing line expansion in North America soon. He said the firm also studies potential integrated steel plant project in Thailand and potential cold rolled steel making joint venture with Tata Steel of India. Mr. Muneoka said the firm doesn’t rule out potential friendly merger and acquisition but it is not the timing when acquisition cost is very high. Mr. Muneoka said the firm seeks continuous effort for higher level of manufacturing ability with advanced technology and strong manufacturing operations. He said without such strong operational base, the firm cannot keep the global player status and expand the capacity to more than 40 million tonnes.