JFE Steel to Increase High Grade Steel Output, Mr. Bada

Hajime Bada, president of JFE Steel, said to Japan Metal Bulletin that the firm increases high grade steel products by 3 million tonnes toward fiscal 2008 ending March 2009 from fiscal 2005 along the 3-year management plan from fiscal 2006, when the firm cannot meet demand for high grade products enough at present. Crude steel production would increase to 30 million tonnes per year at the parent in fiscal 2008, he said.Mr. Bada said the firm would expand production capacity if demand continues growing in Asia, while showed cautiousness in large equipment expansion. He said the firm should have long-span demand outlook for about 20 years if the firm constructs a new blast furnace. He pointed out Japanese domestic steel demand would not increase remarkably in the future and there is little possibility that the firm constructs a new blast furnace in Japan.He also referred to reduction of greenhouse gas emission when JFE Steel decided introduction of a new type shaft furnace in Keihin area of East Japan iron works. The firm aims to advance greenhouse gas emission and energy conservation with constant production.Mr. Bada explained Guangzhou JFE Steel Sheet Company, a joint venture with Guangzhou Steel in China, acquired quality certification from automobile makers as well as construction material makers and consumer electronics makers for hot dip zinc coated steel sheet. He said the JV would increase production mainly for automobile and achieve 400,000 tonnes per year in 2007.Mr. Bada said JFE Steel carried out feasibility study as preparation to construct a cold-rolled steel sheet plant with Guangzhou Steel. He was concerned that 1 million tonnes of hot-rolled steel sheet would be needed per year at least if a new plant is established and that JFE Steel does not have enough supply capacity at present. He was also concerned about low profitability of re-rolling business.