Japan 4 Major Steels Expand Capital Expenditure

Japanese major 4 steel makers including Nippon Steel and JFE Steel increase the capital expenditure to 1.824 trillion yen for 3 years through fiscal 2008, which is 75% higher than previous 3 years through fiscal 2005. They try to expand the output capacity to meet growing demand for high valued steel products while they try to reduce carbon dioxide emission. Japanese integrated steel makers plan higher capital expenditure more than depreciation after they improved the financial position. Sumitomo Metal Industries and Kobe Steel plan around 2.5 times of expenditure for 3 years through fiscal 2008 started April compared with former 3 years through fiscal 2005. The makers try to expand the upper stream output capacity including blast furnace, steel making and continuous caster to increase the supply of high valued steel products for manufacturers. They also expand environmental and energy saving facility including coke dry quenching and steel dust treatment plant. The major 4 steels’ expenditure increases by 4.3% to 666 billion yen for fiscal 2008 from previous year. Nippon Steel plans to increase the expenditure by 13% to 260 billion yen when the firm plans blast furnace relining and plate mill expansion at Oita works. JFE Steel plans to increase the expenditure by 17% to 184 billion yen when the firm plans expansion of continuous caster and degasser at West and East Japan works. Sumitomo Metals plans 153 billion yen of capital expenditure for fiscal 2008 as fiscal 2007 when the firm renews blast furnace and upper stream facilities at Wakayama works. Kobe Steel plans 69 billion yen of expenditure, which is 26% lower than previous year, after the firm relined blast furnaces at Kakogawa and Kobe works in fiscal 2007.