Mitsubishi Steel Invests for 3 Works Expansion

Mitsubishi Steel Mfg will invest approximately 1.87 billion yen for the enhancement of domestic and overseas works. The firm invests 450 million yen for Hirota works in Fukushima Prefecture, Japan, 350 million yen for Muroran works of Mitsubishi Steel Muroran Inc. and 1.07 billion yen for MSM, a 100% subsidiary in Thailand. The firm newly constructs or rationalizes facilities in these works to enhance high value added products and reduce productive costs. Construction works will finish within 2008 at Hirota works and MSM and by January 2009 at Muroran works of Mitsubishi Steel Muroran.Hirota works produces steel castings and keeps high operation for corrosion abrasions used in construction machines sold mainly to Esco of US. Mitsubishi invests aggressively to Hirota works with the strength which Mitsubishi joined hands for exclusive marketing right with Esco. Hirota works introduces one heat treatment furnace and finishes the introduction until September 2008. The firm moved electric furnace to Hirota works from Utsunomiya works in 2005. Hirota works operates 2 electric furnaces and fixes up consistent production system for steel casting.Utsunomiya works specializes machining process of precision forged parts. Hirota works is far from Utsunomiya works by about 100 kilometers. The firm reduces transport cost between Hirota and Utsunomiya by this investment.MSM produces precision steel casting mainly for turbo charger parts. Mitsubishi will shift the domestic production to MSM and reduce production cost. MSM introduces 10 MC lathe machines to build up machining processes and introduces one melting furnace.Muroran works of Mitsubishi Steel Muroran renews control computing system for special steel rolling mill.Mitsubishi plans the investment at about 15 billion yen for 3 years in middle term business plan from fiscal 2006, is investing aggressively to spring parts or forging parts. The firm’s consolidated accomplishment is expected to be 130 billion yen for the sales, 12 billion yen for recurring profit and 6.7 billion yen for net profit in the business year ending in March 2008. The firm expects consolidated recurring profit at 13.5 billion yen in the business year ending in March 2009.