JFE Steel Plans Aggressive Capital Expenditure for F2008

JFE Steel announced the capital expenditure will increase to record 184 billion yen in construction cost base for fiscal 2008 started April from 157.3 billion yen in fiscal 2007. The firm expands the steel making capacity both at West and East Japan works to increase the high valued steel supply ability while the firm builds scrap treatment shaft furnace and coke dry quenching for better energy and environmental performance. The firm targets 33 million tonnes of raw steel output capacity by fiscal 2011 compared with 30.52 million tonnes in fiscal 2007 for another growth by expanding the high valued steel sales. The firm starts the expansion in fiscal 2008 one year ahead of 3-year plan through fiscal 2011. The firm expends 52 billion yen for East Japan works and 111 billion yen for West Japan works in fiscal 2008 compared with 55 billion yen and 80 billion yen in fiscal 2007. The firm expands the continuous caster and degasser in East and West Japan works. The firm also plans to increase the expenditure to 18 billion yen for Chita works from 9 billion yen. The firm’s expenditure will be 474.1 billion yen for fiscal 2006-2008 compared with 352.6 billion yen for previous 3-year plan.