Nippon Steel to Expend More Than 1 trillion yen for Growth

Nippon Steel will use 80% or around 240 billion yen of 300 billion yen of finance through convertible bond for capital expenditure and investment for future growth. The firm will expend more than 1 trillion yen including 850 billion yen of investment under 3-year plan into expansion of output capacity for high valued steel products and investment into business at home and abroad. The firm tries to meet the higher demand for high valued steels and to keep the presence in the international steel market under mega consolidation for sustainable growth. The firm increases the expenditure when high valued steel demand increases more than expected by using 80% of the newly financing 300 billion yen while the firm uses 20% of the new fund for refinancing. The firm already announced purchasing share in POSCO and USIMINAS. The firm is considering investment for expansion of existing facilities at home and abroad and business opportunities in North America, Thailand, Brazil and China. The firm already decided to expand the blast furnaces at Nagoya and Oita works increasing the output capacity to annual 35 million tonnes for the parent company and 40 million tonnes including group companies and supply from alliance partners. The firm also seeks opportunity to expand the group output to more than 40 million tonnes when Arcelor Mittal has 120 million tonnes of raw steel and mega consolidations occur. The firm planed to expend 850 billion yen including 700 billion yen of capital expenditure and 150 billion yen of investment under the 3-year plan for world no.1 supplier of high valued steel products.