Nippon Yakin Kogyo Cuts Down 3-Year Capex Plan to 14B Yen

Nippon Yakin Kogyo reviewed its 3-year capital expenditure plan by March 2011 down to 14 billion yen from initially figured 24 billion yen. The firm will maintain the capex to expand the high function material business and to enhance the environmental responsibility. Meanwhile, the firm will cut the capex for basic managing improvement and affiliate companies.

At the same time, the firm will continue output reduction of nickel series cold stainless steel sheet at its productive subsidiary, YAKIN Kawasaki, until March 2009, 60% lower than the full capacity. Nippon Yakin Kogyo will also implement extra shut down at the head office and affiliate sites in Kawasaki and Oheyama in February.

Nippon Yakin Kogyo initially planned 24 billion yen capex for fiscal 2008-2010 ending March 2011, 6.5 billion yen of which is for the high function material business, 1.5 billion yen for environmental investment, 2 billion yen for the system restructuring and 14 billion yen for basic managing improvement and affiliate companies. The firm shrinks the capex along the recent economic downturn.

The firm tries to minimize capex by reinforcing maintenance of productive facilities and delaying the renewals. Meanwhile, the firm continues strong investment to increase sales of high function materials such as high nickel alloy steels.

As to extra shut down in February, Nippon Yakin Kogyo will take 3 extra holidays at the head office and Kawasaki office. The productive site in Kawasaki will halt the operation for 4-6 days and the nickel refining site in Oheyama for 4 days in February. The firm decided to apply for governmental employment adjustment subsidy.