JFE Steel to Expand Mid-Diameter Seamless Mill at Chita

JFE Steel announced on Wednesday the firm expands the output capacity of high valued middle diameter seamless steel pipe by 60% to annual 250,000 tonnes at Chita plant for around 15 billion yen. The firm starts the expanded capacity operation in July 2008 trying to meet higher demand mainly for 13% chrome oil well tube. The firm expects the expansion including small diameter tube results in annual 20 billion yen of higher recurring profit compared with first half of fiscal 2006. The firm expands rolling mill capacity by higher piercing speed and better sizing accuracy. The firm also adds and converts temper furnace for higher speed treatment and better accuracy while the firm expands finishing line for higher speed. The firm with around 50% share in world 13% chrome oil well tube market tries to meet higher demand for the product under growing demand due to severer developing conditions including deeper underground and higher temperature. The firm finished the expansion of 13% chrome oil well tube production capacity to annual 120,000 tonnes at small diameter seamless mill of Chita in January for 10 billion yen from 90,000 tonnes before. Chita plant produces around 400,000 tonnes per year of high valued seamless tube at the small and middle diameter seamless mills. After the expansion, the plant will produce annual 500,000 tonnes including 150,000 tonnes of 13% chrome tube.