Daido Steel announced on Wednesday the firm tries to expand the business foothold for stable profit and develop growth businesses and products under the 3-year plan starting April 2006. The firm improves production ability of automotive steel both in quality and volume for further growth while the firm expands no.1 products, which has higher function and differentiate the firm from competitors, for electronics, airplane, power generation and plant. The firm targets 54 billion yen of recurring profit with 530 billion yen of sales and more than 10% of return on assets in fiscal 2008 ending March 2009. The firm made the plan under the business condition when the major user of automobile will grow by annual 4% in steel demand while hither price of raw materials continues due to China factor and steel supply is getting oversupply toward 2010. The firm tries to improve the quality and to shift the volume to quality under the plan. The firm targets higher recurring profit under the plan than estimated record profit for fiscal 2005. The firm improves special steel business. The firm also expands the no.1 products line and speeds up the development of next no.1 products, which are 9 items now. The firm renews research and development system including joint development in the group companies along with wider global business. The firm also enforces environmental action and risk management. The firm tries to expand the automobile steel output capacity to meet the growing demand for the core business of special steel, which represents 55% of total sales. The firm increases the capacity with existing facilities by reducing cost and improving the productivity. The firm increases the steel products shipment from current just more than 110,000 tonnes to more than 130,000 tonnes. The firm also provides the bearing steel and other products for US plants of Japanese users through local partner. The firm improves the output ability in volume and variety through the partnership with Hitachi Metals including joint procurement of raw materials and joint development of production technology. The firm tries to meet higher needs from users by improving technology and capacity to make difficult-to-machine materials.
Japan Steel Scrap Composite Prices (Sangyo Press)12/01/2022
|46600YEN (-200)||47800YEN (-100)|
|337.46US$ (2.86)||346.15US$ (3.69)|
* Average of electric furnaces steel maker's purchasing price in Tokyo, Osaka and Nagoya (per ton)