Nisshin Steel Launches New Growth Plan

Nisshin Steel announced on Thursday the firm launches new 2-year business plan through fiscal 2011 ending March 2012 to seek next growth through development new market including offshore market and new applications while the firm improves the competitiveness further. In 5-10 years, the firm targets no.1 stainless maker both in Japan and world in technology, development ability, sales power and profitability. The firm also doubles monthly production of hot-dipped zinc-aluminium-magnesium-alloy-coated steel plate, ZAM to 100,000 tonnes in the coated stele business while the firm seeks offshore growth for special flat steel business along with the domestic top share position.

The firm targets 30 billion yen of consolidated recurring profit, more than 40% of equity capital ratio and 1 or less of debt equity ratio for fiscal 2012 compared with 51 billion yen of loss, 34% and 1.24 respectively in fiscal 2009. The firm tries to realize 40 billion yen of recurring profit in longer term. The firm keeps annual 22 billion yen level of basic capital expenditure and invests for strategic areas additionally.

The firm eyes modernization of stainless steel making process, expansion of ZAM, reshuffling of 4 plants around Osaka and new berth at Sakai plant to improve the competitiveness in the 2 years plan. The firm eyes new supply base in emerging market through tie-up with the users.

In 5-10 years, the firm improves the presence in stainless business by utilizing alliance with Acerinox of Spain, in which Nisshin Steel has 15% of interest, and Ningbo Baixin Stainless Steel, in which Nisshin Steel has 21.9% interest. In coated steel business, the firm tries to expand the activity by utilizing wholly owned Wheeling-Nisshin of USA and developing demand in Southeast Asia.

The president Hideo Suzuki said at the press conference on Thursday the firm and Nippon Steel study potential joint investment in stainless unit of Baoshan Iron and Steel of China.