Nippon Steel to Launch New Global Strategic Plan

Nippon Steel’s president Akio Mimura said on Thursday the firm make comprehensive strategic plan for next growth in a year to make major step as global player in world steel industry. He said the firm would make offshore production base at somewhere with efficient demand, high grade steel users and fitting local partner. The firm tries to become global player with offshore production base for nest growth. Mr. Mimura said the firm starts study for comprehensive growth plan for next step of annual 40 million tonnes of output capacity with concrete projects in around a year. He said the new management team led by next president Shoji Muneoka will launch the new growth plan with profit and financial plan. Mr. Mimura said the firm already gains 60% profit from export and indirect export and the firm already completed the strategy for global supplier, which supplies steel products mainly from Japanese production bases. He said the firm will decide blast furnace expansion at Kimitsu and Yawata works by 2009 but the firm has no major expansion plan for the domestic works. He indicated the firm should step forward to establish offshore production base in order to meet growing high valued steel demand. Mr. Mimura said the firm and Arcelor Mittal are still in talk for expansion of US continuous galvanizing line to meet growing demand by local automakers. However, he said they should clear the higher cost for the expansion. He said the firm tries to finalize the talk to launch expanded capacity in 2010 when North American transplants of Japanese automakers expand the output capacity.