Nippon Steel starts relining of No.2 blast furnace at Kimitsu works in January 2012 for around 40 billion yen. The firm apparently restarts the operation in May 2012 after 3-4 months of relining to increase the inner capacity of the furnace to around 4,500 cubic meters from 3,273 cubic meters. Nippon Steel’s crude steel production capacity increases by 700,000 tonnes to 35.7 million tonnes per year. With the expansion, the firm secures additional iron making capacity to meet growing steel demand mainly in Asia.
Nippon Steel tries to reduce cost at upper stream operations by using lower quality raw materials more and reducing agents consumption at the all works. Kimitsu runs around 90-95% of around 900,000 tonnes per month of iron and steel making capacity. Kimitsu works idled 3 blast furnaces temporarily after the major earth quake. Under tight electric power supply, the works quickly resumed the operation of the furnaces to secure power generated by gas from the steel making operations in order to maximize power supply for Tokyo Electric Power Company. Kimitsu works recovered around 90% operation at iron and steel making operations at end of March. However, the operation rate was 80-90% at hot rolling, cold rolling and forming processes due to slower demand after the quake. Kimitsu started around 40 days repair at plate mill to renew roughing mill housing and finishing mill motor. The works tries to save power consumption in and after July under nationwide energy saving campaign. The works plans regular maintenance in July and August and studies better regular inspection timing. The works tries to increase the power supply for Tokyo Electric Power from 50/50 joint power company between Nippon Steel and Tokyo Electric Power. The works shifts a part of production from daytime in weekday to nighttime to saving daytime power consumption.Japan Steel Scrap Composite Prices (Sangyo Press)
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