Nippon Steel Engineering to Expand Oil, Gas Business

Nippon Steel Engineering’s marine engineering and construction unit targets more than 55 billion yen of consolidated sales and more than 50 billion yen of order receipt in fiscal 2011 started April. The firm tries to follow strong demand for wellhead platform and related facility when oil and gas development projects get active in Thailand, Vietnam and other Southeast Asian countries, India and Australia.

The firm separated marine engineering and construction from energy facilities unit in April 2010. The marine engineering and construction unit covers offshore oil and gas development facility and domestic marine structure while the energy facilities unit covers energy plants.

The marine engineering and construction unit’s consolidated sales were 51.3 billion yen in fiscal 2010 while the order receipt was 92.8 billion yen. The unit completed decommissioning work of offshore Iwaki platform. The order increased when the unit got orders on oil and gas related works mainly in Southeast Asia while the unit won major order to build platform for offshore wellhead in Thailand.

The marine engineering and construction unit tries to focus on order for offshore projects in fiscal 2011 due to uncertainty for domestic project. The unit already got 3 orders on wellhead platform in Thailand under the strong activity in Southeast Asia and Australia. The unit director Satoshi Nishimura said the unit targets more than 50 billion yen of consolidate order receipt in fiscal 2011 by developing new customers.

The unit tries to realize around 10% lower cost and around 20% higher productivity to improve the profitability under the severe competition. The unit tries to enter subsea system market

The unit also expands the activity for oil and gas development in Oceania through the Australian company. The unit expands Southeast Asian business for offshore structure through Thai company. The unit tries to improve the synergy for profit growth.