JFE Bars &Shapes to Expend 34 billion yen in 3 years

JFE Bars & Shapes expends 34 billion yen mainly for Sendai plant to renew old facilities for strong business base and stable profitability under the 3-year plan to fiscal 2008 ending March 2009. The firm increases the output capacity of special steel by around 20% by renewing Sendai plant including new environmental friendly efficient electric furnace, semi-finished steel finishing facility and wire rod mill. The firm also renews mid- and small-sized shape mill at Himeji plant to improve the cost competitiveness for the long products. The firm introduces new electric furnace of same type for 22 billion yen for Sendai plant as new one started operation at Himeji plant in late 2005. The firm also renews production control system at Sendai along with renewal of semi-finished steel finishing and wire rod mill. The firm shifts the energy for rolling facilities from heavy oil to liquid natural gas to reduce emission of carbon dioxide. The firm has bar mill for special steel bar and bar in coil and wire rod mill for carbon steel and special steel wire rod producing more than 70,000 tonnes per month. The firm expands the output to 90,000 tonnes in fiscal 2008. The firm keeps purchasing more than 300,000 tonnes per year of bloom from Fukuyama area of West Japan works of JFE Steel. The firm tries to meet higher special steel demand mainly for automobile along with better customer satisfaction. The firm tries to increase the long products items and to improve quality by renewing mid- and small-sized shape mill at Himeji plant for 5 billion yen. The firm is building new office building finishing the work by early 2007. The firm tries to improve the cost competitiveness and quality when the demand decreases for building and civil works. The firm expends 7 billion yen to renew other old facilities. The firm targets 22 billion yen of recurring profit and 14% of recurring profit for 158 billion yen of sales in fiscal 2008. The firm also reduces debt to 24 billion yen in fiscal 2008 from 48.9 billion yen in fiscal 2005. The firm tries to clear the 9% carbon dioxide reduction target, which Japan Iron and Steel Federation set for fiscal 2010 compared with fiscal 1990, by introducing new electric furnaces at Himeji and Sendai and energy shift to liquid natural gas at rolling operations of Sendai.