Aichi Steel plans to increase crude steel output by 10-15% to 120,000 tonnes per month in the last half of fiscal 2011 ending in March 2012 compared with the present level. The output would reach the level as high as the current peak in fiscal 2007 to meet the demand increase from car industry.
The firm has 2 blast furnaces in Chita Works and produced crude steel at 1.12 million tonnes in fiscal 2010. Crude steel output decreased to 60% after Japan Earthquake since automobile production decreased largely along supply chain troubles for automotive components. The demand has currently recovered to the usual year level. Japanese automakers plan to increase the output largely in and after October. Mr. Takahiro Fujioka, president of Aichi Steel, said the firm follows increasing automobile output. The firm expects the crude steel production would reach 1.4 million tonnes per year level in the last half of fiscal 2011, the current highest level. Aichi Steel plans to minimize staff increase at Chita works when the market situation is still unclear. Chita works will respond to the demand rebound by improvement of productivity and quality.Japan Steel Scrap Composite Prices (Sangyo Press)
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