Tokyo Steel Manufacturing announced on Friday the firm stops production at Takamatsu plant by March 2012. The plant makes concrete reinforcing steel bar and wire rod. The firm withdraws from wire rod business while the rebar production shifts to Okayama plant.
The demand of rebar and wire rod is slow due to shrink of domestic construction market after Lehman shock. The firm tried to improve the profitability of Takamatsu plant but the firm finally decided to stop the operation when the production wouldn’t increase in foreseeable future. The firm utilizes the Takamatsu plant building with 102,590 square meters of land as products deposit for Shikoku area after the production stop. The firm also keeps purchasing ferrous scrap around the area for other steel making plants. The firm keeps the 67 of employees and discusses with union on the job arrangement. The firm evaluates the impact on the results from the stoppage.Japan Steel Scrap Composite Prices (Sangyo Press)
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