JFE Steel’s East Japan Works Targets 9M tonnes of Raw Steel Output

JFE Steel’s East Japan works revised the raw steel output target upward to more than 9 million tonnes in fiscal 2008 ending March 2009 under the 3-year plan from original 8.5 million tonnes. The works tries to increase the output to meet higher demand for high valued steel products along with more stable operation. The works produced 8.04 million tonnes in fiscal 2005. The works, which targeted normal 8.5 million tonnes and peak 9 million tonnes, cleared annualized 9 million tonnes at the trial in August. The works expects the output reaches 8.5 million tonnes in fiscal 2006. The works considers additional expansion to 10 million tonnes. The works tries to secure world top class of profitability along with the volume expansion.

The works operates no.6 blast furnace with 5,135 cubic meters of capacity at Chiba area and no.2 blast furnace with 5,000 cubic meters at Keihin area. The works reduced the output to 8.04 million tonnes in fiscal 2005 due to adjustment in Asian market compared with 7.89 million tonnes in fiscal 2003 and 8.25 million tonnes in fiscal 2004.

The works tries to change to high valued steel works under the 3-year plan. The works targets 1.5 times of high valued products rate and 1.25 times of work labor productivity in fiscal 2008 compared with fiscal 2005 while the works expands the output capacity.

The works increased the raw steel output to 4.2 million tonnes in April-September 2006 under the expansion when the high valued steel demand increases mainly for manufacturers including automobile and shipbuilding both at home and abroad. The works plans to produce 4.3 million tonnes in October-March increasing the output to 8.5 million tonnes in fiscal 2006.