Daido Steel invests around 20 billion yen to modernize steel making process at Chita plant. The firm adds 150 tonnes electric furnace at the plant by late 2013 while the firm improves the material flow and converts No.1 continuous caster. The firm improves the production capacity for high end products and cost competitiveness when the firm tries to follow growing demand for automotive high performance structural steel and special stainless products in Asia.
Chita plant makes annual 1.5 million tonnes of crude steel, which represents 90% of the total production for the firm. The plant started the history in 1962 as supply base for automotive structural steel. The plant added stainless steel, tool steel and high alloy steel for the products line. However, the material flow got complicate. Through the investment, the plant improves the material flow along with better production capacity, quality and cost structure. The large electric furnace will contribute to lower cost structure when electricity cost would increase. The firm also improves the energy efficiency and melting and refining operation. The firm utilizes natural gas and other energy sources instead of electricity preparing for future energy situation.Japan Steel Scrap Composite Prices (Sangyo Press)
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