JFE Steel’ Pipe Sector Shifts to High Valued Items

JFE Steel’s pipe business sector expects the only 1 and no.1 items represents around 45% of total sales for the sector in fiscal 2006 ending March 2007. The rate increases by 5% from fiscal 2005 toward more than 50% of target for fiscal 2008 under the 3-year plan. The firm tries to clear the target by expanding sales of original and high valued items for energy and automobile industry. The sector supplies 13% chrome seamless tube with world no.1 share and original high performance welded pipe, History steel tube, large diameter welded line pipe and 15% chrome corrosion resistance oil well tube. The sector covers ultra thick UOE shaped large diameter pipe, which the firm produces at Chiba area of East Japan works, from fiscal 2006. The firm targets 50% of world market share for 13% chrome seamless tube after the expansion to annual 120,000 tonnes in the month from current 90,000 tonnes of production. The firm also expands the monthly sales of History tube to 4,000-5,000 tonnes level by fiscal 2008 from 3,000 tonnes at the end of March 2007. The firm got 82,000 tonnes of order for 26-inch pipe for Australian gas transport pipeline in 2006. The firm expects accumulated order receipt is 3,500 tonnes for 15% chrome corrosion resistance tube.