Nippon Metal Industry Plans 15-20BY Capex for F2008-2010

Nippon Metal Industry reviews its 3-year management plan to fiscal 2008 ending March 2009 and devises a new mid-term plan within this year when the firm has already achieved the target for the present 3-year plan in fiscal 2006. The firm plans capital expenditure of total 15-20 billion yen for fiscal 2008-2010 for equipment expansion, human resources development and business alliances at home and overseas.Nippon Metal Industry targeted consolidated recurring profit at 7 billion yen in the mid-term plan fro fiscal 2006-2008. The firm posted recurring profit of 15.2 billion yen in fiscal 2006 thanks to the offshore active demand and the price up of stainless steel products to reflect higher nickel cost. The consolidated net sales were 169.1 billion yen in fiscal 2006 which also exceeded the target at 120 billion yen for F2006-2008 plan.In fiscal 2007, the firm expects to gain additional profits of 3 billion yen by reorganization of group companies in Kinuura area. The firm finished large projects in fiscal 2007 and launches a new business plan toward fiscal 2010.Nippon Metal Industry plans to renew its steel making equipment for next 3 years to reinforce the profitability more. The firm examines renewal of an 80t electric furnace and AOD furnace at Kinuura works. The firm already decided to invest 700 million yen for quality improvement of a hot rolling mill.For the increasing of high-value-added products, the firm examines output capacity expansion of annealing and pickling lines, a precision rolling mill and a bright annealing furnace line. The firm previously reduced its rolling mills from 3 to 1 and bright annealing furnaces from 2 to 1 through the transference of Kinuura works.