Tohoku Steel to Renew Old Equipment in 3 Years to March 2009

Tohoku Steel, JFE Steel’s subsidiary to produce concrete reinforcing steel bar, will invest around 3 billion yen to renew old equipment during 3 years to March 2009 along its new midterm management plan. The firm renewed a roughing mill in August 2006 as the first project and will renew a transformer and a cooling bed and build up an intermediate rolling mill and a finishing mill next summer. Tohoku Steel aims to improve productivity for cost reduction, operative stabilization for re-production system and environment measure such as the improvement of dust catcher.The renewal of the new roughing mill completed on August 5 which started operation in 1973. The new mill operates smoothly and contributes to the stable operation and the improvement of products quality and extraction rate. Tohoku Steel invested 1 billion yen for the roughing mill. The firm will build up an intermediate mill and a finishing mill for the next.Tohoku Steel plans to improve heat charge of a transformer in order to shorten steel making time and to increase the output capacity. The firm aims to cut electric power cost by the increasing of steel making in night time.The firm carried out first construction of Sendai plant in 1973 and second construction in 1975. Most equipment has worked for about 30 years. The firm plans to increase the investment for environmental measure and safety during 3 years to March 2009, while the firm has held down the investment so far.Tohoku Steel produces about 28,000 tonnes of rebar per month with 10-51 millimeters diameter. The firm continues full operation in fiscal 2006 starting April thanks to the firm demand in Tohoku area of Japan.