JFE Steel Mulls Plate Expansion to 6.5 million tonnes Level

JFE Steel started study to expand the annual plate steel output capacity to 6.5 million tonnes under new 3-year plan through fiscal 2011 ending March 2012 after the firm expands the capacity to 6 million tonnes in fiscal 2008. With the 10% additional expansion, the firm tries to meet strong demand from shipbuilders, construction machinery makers and steel structure fabricators when the supply is very tight due to the strong demand. JFE Steel increased the plate output since the merger in 2003. The output increased by around 300,000 tonnes to around 5.7 million tonnes in fiscal 2007 from around 5.6 million tonnes in fiscal 2006. The firm already realized monthly 500,000 tonnes of output at 3 plate mills in January and March 2008 through marginal expansion and better productivity. The firm plans around 5.8 million tonnes of plate output in fiscal 2008. The firm starts operation of new reheat furnace at Fukuyama of West Japan works in December. The firm increases the operation level to averaged 500,000 tonnes per month or annualized 6 million tonnes level in fiscal 2008.