JFE Steel Eyes Fukuyama No.3 Furnace Restart in May 2011

JFE Steel’s West Japan works plans more than 20 million tonnes of raw steel output in fiscal 2010 started April, which is almost full capacity operation for 6 blast furnaces at Kurashiki and Fukuyama areas, said the vice president Hiroshi Nomura. Mr. Nomura said the works could restart operation of No.3 blast furnace at Fukuyama as early as May 2011 depending on demand condition while the relining will start in January 2011 through May.

The works produced 5.11 million tonnes of raw steel in April-June. The works plans same level of production in and after July-September under the strong demand. The production level is almost full capacity both for Fukuyama and Kurashiki with operating 3 blast furnaces each.

The works eyes restart of idled No.3 blast furnace at Fukuyama after the relining. The furnace will have around 1 million tonnes more pig iron output capacity after the relining and expansion works from 3,223 cubic meters of capacity to 4,300 cubic meters.

The works finished around 50 billion yen of steel making capacity expansion program from 2008 starting the operation in April-May. With restart of No.3 blast furnace at Fukuyama, the works has annual 23 million tonnes of raw steel output capacity including 13 million tonnes at Fukuyama and 10 million tonnes at Kurashiki. With the expansion, JFE Steel’s total output capacity reaches 33 million tonnes.

Fukuyama area, which already started new No.7 slab caster in April to increase the high valued steel products, will start operation of new No.5 continuous annealing line in December one month ahead of original schedule. Kurashiki area completes construction of new No.6-B coke battery in February 2011. Kurashiki area also adds utility gas injection facility at the sinter plant by spring 2011 to utilize the gas as energy for sinter making in order to reduce the carbon dioxide emission. The works also expands export shipping capacity through expansion for cranes at the shipping berth.

The works tries to cover production loss of electrical steel at other lines to minimize the delivery delay after one of the electrical steel making line stopped operation due to fire trouble on July 13.

The works plans 130 billion yen of capital expenditure for fiscal 2010. The budget includes around 29 billion yen of No.3 blast furnace relining at Fukuyama, around 20 billion yen of coke expansion at Kurashiki while the works plans old facility renewal and safety and quake resistant investment.