NSSC to Reduce Cold Rolled Stainless Output by 20%

Nippon Steel & Sumikin Stainless Steel (NSSC) reduces cold rolled stainless flat steel production capacity by around 20% to reorganize the production base at Kashima and Hikari plants when domestic demand is slow and the export is slump under high yen rate. The firm starts the new production base with production increase option in April 2012 while the firm applies to employment adjustment subsidy.

The firm reduces the production by 20% for cold rolled stainless flat steel except for tandem cold rolling mill by focusing the production into Hikari plant while the idle time is focused at Kashima plant. The firm halves operation time of 2 pickling and annealing lines and 2 cold rolling mills at Kashima plant by reducing the shifts as a line. The firm uses the lines with variation of production sizes and grades for the flexible operation.

Through the reorganization, Kashima plant’s cold rolled sheet making shop reduces the work force by 30-40% from around 200 including contract workers. The firm moves a part of the workforce to other positions while the firm reduces working time for the part of the workers by temporary off duty.