Sumitomo Metal Industries tries to establish 14 million tonnes of annual raw steel output capacity in fiscal 2008 starting April 2008. The firm plans to produce 13.4 million tonnes including Kokura, Naoetsu and Sumikin Iron & Steel in fiscal 2007 compared with 13.38 million tonnes in fiscal 2006 and 13.31 million tonnes in fiscal 2005. The firm increases the output to 14 million tonnes after commissioning of no.3 blast furnace at Kashima works in May 2007 when the firm operates the iron and steel making shops at full capacity to meet strong demand. The firm will increase the capacity to 14.5 million tonnes in second half of fiscal 2009 with commissioning of no.1 blast furnace at Wakayama works. The output will increase by 5 million tonnes to 14 million tonnes compared with recent bottom of 9 million tonnes in fiscal 1998. The firm tries to improve the corporate value sustainably through the expansion of high quality products including steel pipe for energy and automobile industry and steel sheet for automobile under the 3-year plan to fiscal 2008. The firm tries to expand the output capacity including iron and steel making shops and high end downstream operations through the aggressive capital expenditure.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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