Japan Special Steel Output May Decrease after Mega Quake

Japanese special steel makers’ outputs are likely to decrease when domestic automobile makers launched temporary suspensions after mega earthquake. Some special steel makers have already downed output paces. Other special steel makers may revise production plans at their plants around Tokyo due to TEPCO’s power outage plan. Japanese special steel output hit monthly record high in January and maintained high level mainly for automobiles. But the production would be adjusted along the circumstance change.

Toyota Motor decided to stop operation of all domestic plants until Wednesday. Toyota’s group companies, Central Motor and Kanto Auto Works, were damaged by earthquake. Central Motor’s Miyagi plant and Kanto Auto Works’ Iwate plant are in suspension though these plants produce accumulatively 600,000 cars per year.

Nissan Motor also stops all domestic plants by Wednesday. The firm’s Tochigi plant would take 3 weeks to restore casting lines and 1 week for axle lines.

Honda’s Tochigi works was heavily damaged on its productive facilities. Honda stopped operation of Saitama and Hamamatsu works since the firm’s procurement division was located in Tochigi works and the firm couldn’t collect material supply information from component makers.

Car makers are also concerned that automotive component makers would suspend operations in North Japan due to earthquake damages and electric power outage plan.