Nippon Yakin Kogyo will increase the sales rate of high performance alloys with more than 30% of nickel to 50% of total sales when the firm is in line with the target of 7% return on assets and 30% consolidated equity ratio for 3-year plan to fiscal 2007 starting April. The firm also improves the production base through better productivity, larger lots and renewal of production facilities. The firm expands the high performance alloy sales under the growing demand for environmental facilities and energy development. The firm increases the high performance alloy sales to 50% of the total sales when the rate will increase to 35-36% in April-September 2007 from 29% in fiscal 2006 and 25% in fiscal 2005. The firm also improves the financial position by reducing debt and inventory though the firm already reduced the inventory volume by 50% for products from the peak and by 20% for products in process. However, the inventory value increased due to higher cost for raw materials. The firm starts study for new mid-term business plan from fiscal 2008. The firm tries to improve the production base for high performance alloys when the new argon oxygen decarburization furnace starts operation in January 2008. The firm improves the profitability by shifting high performance alloys from volatile stainless products.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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