Nippon Steel to Invest 150 Billion yen R&D in 3-Year

Nippon Steel plans to invest around 150 billion yen for research and development in 3-years through fiscal 2011 ending March 2012, which is 10% higher than record investment in fiscal 2006-2008. The firm improves the ability to develop new products and new process for advanced technology in the world. The firm secures strategic investment resource including capital expenditure and investment for long term growth despite of severe condition under higher raw materials cost and slow domestic demand. The firm improves the profitability and global business platform as world No.1 company in total capabilities.

The firm focuses the research and development investment in new products for energy and environment industry, especially for solution business for plug-in hybrid vehicle, electric vehicle, wind power generation and solar power generation. The firm also tries to develop new processes for drastic cost reduction, lower grade raw materials usage and carbon dioxide emission reduction.

The firm tries to improve the total competitiveness including technology and cost when offshore competitors launch new integrated steel works in China, South Korea and India while world steel demand keeps increasing. The firm also secures high level capital expenditure to improve the production ability.

The firm expended 132.2 billion yen for research and development in past 3-year plan including 45.3 billion yen in fiscal 2006, 45.3 billion yen in fiscal 2007 and 45.7 billion yen in fiscal 2008. The 3-year investment was higher than 109.4 billion yen in 3-year plan through fiscal 2005.

The firm kept record level of capital expenditure in fiscal 2006-2008 including 273.4 billion yen in fiscal 2006, 308.9 billion yen in fiscal 2007 and 305.7 billion yen in fiscal 2008. The 3-year expenditure was 1.6 times of the previous 3-year. The firm plans more than 300 billion yen of capital expenditure in fiscal 2010 compared with 330 billion yen in fiscal 2009. The firm plans expansion of blast furnace at Kimitsu works, new coke oven at Nagoya works. The firm will keep high level expenditure in fiscal 2011 including maintenance and renewal investment.

The firm invested 340 billion yen for global business and raw materials in fiscal 2006-2008. The firm invested near 90 billion yen for the area and plans high level investment in fiscal 2010.

The firm planned 850 billion yen of investment including capital expenditure in fiscal 2006-2008 but expended 1.22 trillion yen in the 3 years. The firm didn’t disclose the plan for fiscal 2009-2011 but the firm could keep high level of investment for growth strategy.