Japanese integrated steel makers expand investment for research and development (R&D) to keep their technology advantage and enhance cost competitiveness when South Korean and Chinese steel makers are building up most-advanced equipments. Japanese steel makers also need to seek low cost materials when iron ore and coal prices are rising, and to develop innovative productive processes to reduce CO2 emission and save energy consumption.
Nippon Steel’s consolidated investment for R&D increased by 2.4% to 46.8 billion yen by 2.4% in fiscal 2009 ended in March 2010 from fiscal 2008. The firm plans to increase R&D investment along its current mid-term management strategy for fiscal 2009-2011 compared with the largest R&D investment for fiscal 2006-2008. JFE Holdings’ R&D investment was 36 billion yen in fiscal 2009, decreasing by 14.1% from fiscal 2008. The firm plans to increase the investment to 40 billion yen in fiscal 2010. Sumitomo Metal Industries will increase R&D investment by 7.5% to 24.5 billion yen in fiscal 2010 from fiscal 2009. The investment was 22.8 billion yen in fiscal 2009, plus by 3.2% from the previous fiscal year. Kobe Steel’s R&D investment was 31 billion yen in fiscal 2009 and the firm plans to increase the expenditure as needed this year. Nisshin Steel hasn’t announced R&D investment while kept high-level investment for technological development.Japan Steel Scrap Composite Prices (Sangyo Press)
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