Daido Steel to Increase Output to Peak Level at Chita Plant

Daido Steel plans to increase operation rate at Chita Plant in Aichi in and after October when the demand would increase mainly for automobile and could reach peak level in fiscal 2007 ended March 2008. The plant increases the operation rate to maximum level at operating 4 electric furnaces with current workforce while the plant increases semi-finished products acceptance from Shibukawa plant in Gunma and third parties. The plant delays maintenance outage to winter from regular autumn to increase the operation days in autumn.

Chita plant would increase the raw steel output to around 150,000 tonnes per month in and after October from 130,000 tonnes in fiscal 2009 when main users of automobile makers are increasing the output.

Daido Steel reduced the workforce by around 15% at steel making shop of Chita plant and stopped one of five electric furnaces after the Lehman Shock. The firm increases facilities maintenance outsourcing to secure more operators’ working time for operation in order to maximize the production under the current operation.

Chita plant delays maintenance outage, which takes every around 6 days in spring and autumn, to summer and winter to respond the demand increase.