JP Steel Plantech Gets Higher Order for Steel Plants

Yokohama based steel making facility maker, JP Steel Plantech expects the order receipt increases to around 42 billion yen in fiscal 2006 ending March 2007 compared with original plan of 31 billion yen and 35 billion yen in fiscal 2005. The firm got order from Nakayama Steel Works, Cosipa of Brazil and Riva Group of Italy in fiscal 2006. JP Steel Plantech’ sales increase by around 40% to 36.5 billion yen in fiscal 2006 from fiscal 2005. The core business of steel plants is on growth trend with higher sales and order receipt after the establishment in April 2001. JP Steel Plantech delivered major facilities including continuous galvanizing line for Fukuyama of JFE Steel’s West Japan works and continuous caster for Nippon Steel’s Kimitsu works. JP Steel Plantech’ recurring profit will be around 5% of the sales in fiscal 2006 as the target of the mid-term plan though the profit rate decreases from previous year due to higher cost of materials. JP Steel Plantech got order for converter gas treatment facility from Cosipa, skin pass mill from Nakayama Steel Works and plate leveler from Riva Group while JP Steel Plantech keeps talking with Hyundai Steel of South Korea for converter of the integrated steel works. JP Steel Plantech will deliver converter for Companhia Siderurgica de Tubarao (CST) of Brazil, temper mill for Nakayama Steel Works and coke dry quenching facilities at home and abroad lifting the sales to 40 billion yen.JP Steel Plantech, which is joint venture of JFE Engineering, Sumitomo Heavy Industries, Hitachi Zosen and Kawasaki Heavy Industries, increases the order receipt for steel plants under growing steel demand. The order receipt increased to 35 billion yen in fiscal 2005 from 32.5 billion yen in fiscal 2004 and 23 billion yen in fiscal 2003. The recurring profit increased to 5 times at 2.3 billion yen with flat sales at 26.5 billion yen in fiscal 2005 from fiscal 2004.