Nippon Yakin Kogyo Targets 4 Billion Yen Consolidated Recurring Profit by F2013

Nippon Yakin Kogyo announced on Tuesday the firm aims to increase the full-year consolidated recurring profit to 4 billion yen and the sales volume of high performance stainless steel products (stainless steel products containing nickel at above 30%) to 4,500 tonnes per month along its new three-year management plan for fiscal 2011-2013 ending in March 2014. The sales volume target is higher by 50% than in the last half of fiscal 2010 (October 2010-March 2011). The firm tries to recover the annual recurring profit from the continuous red for fiscal 2008-2010 and aims to become the highly competitive stainless and special steel maker in Asia. Three-year investment is projected at about 23 billion yen for conversion of productive processes or optimization of the group companies.

The firm will invest 3 billion yen for enhancement of competitive power for high performance products, 5 billion yen for raw material procurement, 2 billion yen for environment measures, 9 billion yen for countermeasures against electricity supply regulation and 4 billion yen for the group companies.

The firm tries to expand the sales volume of high performance products in Japan, the U.S.A., Europe and Asia with technical supports by the sales solution division newly established in February 2011. The group companies, NAS TOA and NAS Stainless Steel Strip aim to increase the sales of high quality stainless steel strip and special tube in overseas markets while plan aggressive capacity expansion and establishment of new sales and processing bases. NAS TOA already has production bases in Thailand. The new sales and processing bases would be located in Thailand.

Nippon Yakin Kogyo’s Oeyama works plans stable purchase of nickel ore from overseas and examines additional introduction of kiln suitable for various ores. The works expands composition of ferronickel to high performance products and seeks original material mix. Kawasaki works increases production for April-June 2011 before TEPCO’s electric power supply cit in summer. The works shifts operations mainly to night and carries out regular maintenance in summer.