Nippon Steel Trading Sets 10B Yen Fund for Offshore Business Growth in F2010-2011

Nippon Steel Trading announced on Tuesday the firm tries to keep 10 billion yen of annual consolidated recurring profit along its 2-year management plan for fiscal 2010-2011 starting in April. Mr. Tetsuo Imakubo, president of Nippon Steel Trading, explained the firm prepares total 10 billion yen of investment and loan funds for fiscal 2010-2011 to strengthen overseas and related businesses as a core trading company of Nippon Steel Group. The strategic fund was set at 10.6 billion yen for fiscal 2007-2009 of the previous medium term.

Mr. Imakubo said Nippon Steel Trading tries to increase domestic sales and profits for the steel product businesses through active engagement in business restructures among Japanese dealers and coil centers. Meanwhile, at overseas, the firm seeks new or additional investments to expand coil centers’ capacities or enhance offshore business sites. The firm aims to raise the overseas sales ratio from current 30% to 40-45% mainly in Asian market, said Mr. Imakubo.

At the same time, the firm tries to grow up other businesses such as raw materials, mechanical components and industrial machines. For the medium term growth, the firm also advances human resource development.