Nippon Steel to Integrate Coke Business at Kimitsu Works

Nippon Steel Corporation announced on Friday the firm agreed with Nippon Steel Chemical, the subsidiary of Nippon Steel, to integrate coke business operated by the subsidiary at Kimitsu works to the parent company in July 2007. Nippon Steel considered the firm could improve productive efficiency and cost competitiveness at Kimitsu works by unified operation of pig iron making and coke business. Nippon Steel Chemical aims expansion of its consolidated profits by business concentration into chemical product, electronic material and coal chemical fields.Nippon Steel Chemical will split the coke business unit into a separate company and Nippon Steel will succeed it including production and sales of coke for casting products. Nippon Steel Chemical will continue sales of coke chemical products.Nippon Steel operates coke furnaces at its all iron works other than Kimitsu where Nippon Steel Chemical operates coke furnaces since the beginning of operation in 1968. Nippon Steel aims to reduce pig iron making cost by operating unification of coke furnaces and pig iron making and to build up competitiveness of steel making business including development of human resources.Coke production at Kimitsu works is currently about 4 million tonnes per year for blast furnaces and about 120,000 tonnes per year for casting. The sales are around 65 billion yen per year and employees are about 300 at the works.Nippon Steel started construction of no.5 coke furnace at Oita works in April 2006, which will start operation in 2008. The firm has sought the way to procure coke stably in order to maintain stable supply of high grade steel products and cover output increase due to expansion of blast furnaces. The firm increases coke purchase volume by capital injection to Mitsui Mining.Nippon Steel approaches profit growth for each business field by reinforcing competitive power along the mid-term plan started April 2006. The firm decided coke business integration as a part of the actions to increase earning power by efficient allocation of management resources.