Tohoku Steel reorganizes its operations to catch up with the new market trend. The firm examines establishment of overseas plants when the customers redeploy their plants to overseas under higher yen rate. Meanwhile, Tohoku Steel tries to enter new markets by development of magnet materials and special alloy products within 3-5 years. For special alloy products, the firm plans to renew hot forging facilities in mid 2011.
Tohoku Steel recently launched a project team to seek overseas businesses and analyze the details of local productions. At the same time, the firm aims to cultivate new applications mainly with magnetic materials. The firm plans to raise the sales ratio of new products to 30-40% from present 20%. As to special alloys, the firm expands high-value added products by utilizing the integrated production line with hot forging machine and vacuum melting furnace. The firm will renew hot forging machine in mid 2011 to enhance difficult materials. The firm also plant to expand heat disposal business when domestic manufacturers of automobiles and batteries plan to construct plants in Tohoku area, North Japan.Japan Steel Scrap Composite Prices (Sangyo Press)
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