Japan 3 Iron-Making Plant Makers Accelerate Improvement of Profit Structure

Japanese 3 major iron-making plant makers, Nippon Steel Engineering, Steel Plantech and Mitsubishi-Hitachi Metals Machinery keep high-level sales, and plans to accelerate the improvement of profit structure such as cost reduction. 3 makers have full order because the world steel market entered a period of growth and the demand for iron-making plant is expanding in Japan and overseas. However, the equipment and materials price is increasing. Chinese or South Korean makers follow. The demand hits the ceiling at some future date. For this reason, 3 makers will keep amount of orders accepted by the buildup of favorite subject, and think to get Return on Sales at 5-6% by more cost reduction such as the purchase of equipment and materials from overseas.Iron-Making Plant division of Nippon Steel Engineering aims to keep the sales at 50 billion yen per year and to reach Return on Sales at 6% in fiscal 2006-2008 at ended of March 2009.Steel Plantech is general iron-making plant maker integrated iron-making plant business of NKK, Sumitomo Heavy Industries, Hitachi Zosen Corporation and Kawasaki Heavy Industries. The firm targets to keep the sales at about 35 billion yen and achieve Return on Sales at over 5% after fiscal 2006 at ended of March 2007.Mitsubishi-Hitachi Metals Machinery is combined company integrated iron-making plant business of Mitsubishi heavy Industries and Hitachi, Ltd. The firm has advantage for hot and cold rolling mill. The firm’s order accepted is 50 billion-60 billion yen per year. The firm plans to expand to over 70 billion yen in fiscal 2008 at ended of March 2009.