JFE Steel’s East Japan Works to Improve Profitability

JFE Steel’s Mr. Haruyuki Imamura, top manager of East Japan works held press conference on Wednesday the works tries to become best profitable works with the products and service based best technology under the new 3-year plan started April. He said the works will increase the original products output rate from current 21% to 30% in fiscal 2008 ending March 2009. The works also improves the labor productivity by 25% in 3 years while the works targets 20% higher recurring profit rate for the sales in fiscal 2008 from fiscal 2005. The works tries to expand the raw steel output capacity to annual 9 million tonnes in fiscal 2008 for additional capacity in peak time from current 8.5 million tonnes.The works’ raw steel output is just more than 8 million tonnes per year, which is much smaller than around 20 million tonnes at West Japan works. The East Japan works tries to improve the profitability by streamlining the operations and improving the management to utilize the lean system, said Mr. Imamura.The works also improves the quality control preparing for new continuous pickling line, which is commissioned in 2007 while the works tries to increase the high valued products rate by developing and launching new products at commercial level.