JFE Steel to Expand Steel Output by 3 million tonnes by F2011

JFE Steel expands the raw steel output capacity by 10% to 33 million tonnes for the parent company by fiscal 2011 ending March 2012 under 150 billion yen high grade steel expansion program including hot rolling capacity expansion. The consolidated raw steel output could reach 37 million tonnes in the next 3-year plan through fiscal 2011 compared with estimated 33.8 million tonnes in fiscal 2007. President Hajime Bada said at press conference on Thursday the firm will expand the high valued steel products output by 3 million tonnes in the next 3-year plan to cover growing Asian market after 3 million tonnes of output expansion in current 3-year plan to fiscal 2008. The firm tries to minimize the pig iron output increase not to increase carbon dioxide emission while the firm increases the ferrous scrap consumption by around 3 million tonnes to increase the steel output in the 3 years. The firm increases the raw steel output by 1.5 million tonnes at East Japan and West Japan works each in the 3 years. The firm builds new continuous slab caster at Fukuyama area of West Japan works and plans to add new degasser at Fukuyama and Keihin area of East Japan works. The firm also expands the hot rolling capacity from current 21 million tonnes as of fiscal 2008 to 24 million tonnes by adding reheat furnaces at each mill. Mr. Bada said the firm studies potential integrated steel plant in South East Asia including Thailand. He also said the firm will build continuous galvanizing line in Thailand in future after the study when Thai automobile output will reach 1.7 million tonnes in 2007.