Sumikin Steel & Shapese Switches Hot Pig Iron to Ferrous Scrap

Sumikin Steel & Shapese, Japanese major H-beam maker by electric furnace, aims to return to profitability by drastic measure in the business year ending in March 2012. The firm’s hot pig iron usage was 30% of total raw material in 2009 and the firm reduced step by step the consumption to zero consumption April from while is increasing usage of high quality ferrous scrap. The firm will use hot pig iron depending on situation of raw material when the firm’s plant is in steel works of Sumitomo Metal Industries, Wakayama prefecture. The firm renews furnace shell of electric furnace for improvement of productivity.

The firm is electric furnace steel maker, and the subsidiary of Sumitomo Metals, and produces H-beam and sheet pile. The firm ran recurring loss for 2 consecutive years due to low demand for building material, low market price of steel products and high raw material price.

Consequently, the firm advancing to improve profit by drastic measure and is reducing usage of hot pig iron.

On the other hand, the firm takes in high grade ferrous scrap from local area or around Osaka and reduces raw material cost by devisal of composition for various ferrous scrap. The firm enhances cooperation with iron works of Sumitomo Metals.

The firm renews furnace shell of electric furnace for improvement of productivity of steel making in period of periodic repair and completes in fiscal 2012. The firm improves heat efficiency of inside of furnace by change of furnace shell and increases crude steel output per charge.