Nippon Steel’s Muroran Works Strengthens Special Steel Bar and Wire Rod Production

Nippon Steel’s Muroran works in Hokkaido, Japan, will strengthen annual crude steel production capacity as Muroran complex with a coalition of Mitsubishi Steel Muroran to deal with brisk demand of the special steel bars and wire rods for cars in the new midterm management plan starting in fiscal 2006 ending March 2007. Muroran works plans to increase the production capacity of the electric furnace, which had been in its resting state until Muroran works purchased from Mitsubishi in July 2005, to 20,000 tonnes per month from current about 10,000 tonnes per month, as its full operation by this summer. Muroran works will also strengthen coalitions with Mitsubishi, Sanyo Special Steel, the other Nippon Steel’s works, and Nippon Steel’s affiliate companies to improve production and cost efficiency. Additionally, Muroran works will advance rebuilding of its old coke plant and improvement of its rolling lines and expand throughput by optimization of integrated production process. Domestic car production is likely to increase further mainly for the knockdown sets for export. Muroran works will promote stable operation of its blast furnace, lot aggregation of its revolving furnace, and improvement of operation of its continuous casting equipments. in proportion as the demand. Muroran works will promote sharing of production roles. Mitsubishi will focus on manufacturing steel products with thick diameters. As for bearing steel production, Muroran works will consider complementary relationship with Sanyo Special Steel. Muroran works is supply depot of Nippon Steel’s special steel bars and wire rods. Crude steel production in fiscal 2005 is likely to be about 2.1 million tonnes (about 1.5 million tonnes for Nippon Steel and about 600,000 tonnes for Mitsubishi) as the production in Muroran complex.