Tokyo Steel to Increase Tahara Iron Works Output to 70,000T/M in April

Tahara iron works of Tokyo Steel Manufacturing plans to increase monthly output to 70,000 tonnes in and after April from current 15,000-20,000 tonnes. The works will start production of pickled steel sheet in the second half of fiscal 2011 (October 2011-March 2012). The annual production is expected to reach 1 million tonnes through fiscal 2011. The 3-month output is estimated at average 15,000-20,000 tonnes per month for January-March 2011. The output could hit record high in April since the plant open if reaching 70,000 tonnes.

Tokyo Steel transferred 10 trained staffs from other iron works to Tahara in order to increase production in April. The trained workers lead operative improvement for rolling, steel making and total processes. The firm also examines third shift on Saturday and Sunday in and after April though the works now operates only in night time.

Tahara iron works recently started cold run of pickling line. Hot run is scheduled to start in April. In the second half of fiscal 2011, the works will enter production of pickled steel sheet and achieve stable output at 70,000-80,000 tonnes per month. Demand for pickled steel sheet is increasing from automotive component makers. The works raises supply capacity of hot rolled coil and pickled steel sheet to automobile industry.

Tokyo Steel contracted hot coil export of a few thousand tonnes on Monday. The export price is FOB US$ 830 per tonne. The firm had suspended export since last autumn due to high yen rate and low Asian market price. The firm decided to restart export after 6-month suspension along market price recovery.