Nisshin Steel Plans 40% Higher Capital Expenditure in F2006

Nisshin Steel announced on Thursday the unconsolidated capital expenditure increases to 1.4 times at 31.4 billion yen in construction base for fiscal 2006 started April from fiscal 2005. The expenditure exceeds 30 billion yen for the first time since 1999. The firm expends around 1.4 billion yen for facilities of raw materials loading and distribution, 1.9 billion yen for expansion of special steel making at no.1 steel making shop, 2 billion yen for better dust collector at the no.1 steel making shop and 1.9 billion yen for refresh of continuous pickling line. The firm also expands annealing furnace at Sakai works fro 2.4 billion yen and refreshes cold rolling facility at Osaka works for 1.6 billion yen.The firm plans 137 billion yen of consolidated capital expenditure in payment base for the new 3-year plan to fiscal 2008, which is 2.1 times higher than that in 3 years to fiscal 2005.