JFE Steel announced on Tuesday the firm increases the unconsolidated capital expenditure by 17% to 163 billion yen in construction base in fiscal 2006 from fiscal 2005. The expenditure in payment increases by 36% to 149 billion yen against 128.2 billion yen of depreciation, which was 127.4 billion yen in fiscal 2005.The firm increases the expenditure in construction to 90.3 billion yen for West Japan works in fiscal 2006 from 81.9 billion yen in fiscal 2005. The expenditure increases from 36.7 billion yen to 54.3 billion yen for East Japan works and from 3.2 billion yen to 12.5 billion yen for Chita works while the other expenditure decreases from 17.7 billion yen to 6 billion yen. The firm accelerates expenditure for steel works after the firm finished investment for integrated information system by fiscal 2005. The firm allocates 25 billion yen for relining of no.4 blast furnace and 18 billion yen for no.2 hot-dip galvanizing line at Fukuyama of West Japan works. The firm plans 13 billion yen of new pickling line at Keihin of East Japan works, 10 billion yen of small diameter 13% chrome seamless pipe expansion at Chita works and 6 billion yen of oxygen plant at Chiba of East Japan works. The firm plans 570 billion yen of consolidated capital expenditure in payment for 3 years to fiscal 2008 under the new business plan compared with estimated 410 billion yen for 3-year to fiscal 2005.
Japan Steel Scrap Composite Prices (Sangyo Press)
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