Japan Major 5 Steels Plan 1.4 times Investment in Next 3 Years

Japanese 5 integrated steel makers increase the capital expenditure, investment and financing to 2.625 trillion yen in payment base for 3-year plan to fiscal 2008 ending March 2009, which is 1.4 times of that in 3 years to fiscal 2005. They shift the cash flow allocation to investment and return to shareholders under the new plan after they improved the financial position under former plan more than expected. They focus on expand high-value products output and improve the production facilities while they invest in offshore downstream operations and raw materials.Nippon Steel increases the expenditure, investment and financing to 850 billion yen for new 3-year plan, which is 1.3 times of that in former 3-year plan. The firm plans 700 billion yen of capital expenditure compared with estimated 550 billion yen in 3-year to fiscal 2005. The firm allocates 90% of the expenditure into steel business, of which the firm uses 35% to high-valued products, 25% to refreshment, 20% to cost cutting and 10% to subsidiaries.JFE Holdings increases the capital expenditure, investment and financing by 50% to 780 billion yen under new 3-year plan from former plan. The firm uses 610 billion yen for capital expenditure compared with estimated 480 billion yen for 3 years to fiscal 2005. JFE Steel increases the capital expenditure, investment and financing by 60% to 730 billion yen. The firm uses 570 billion yen for expenditure to expand high-valued products output compared with 410 billion yen for the year to fiscal 2005.Sumitomo Metal Industries increases the capital expenditure by 50% to 480 billion yen for 3-year plan from former plan. The firm also improves the high-valued products output capacity along with maintenance including blast furnace relining at Kashima works.Kobe Steel increases the capital expenditure, investment and financing by 40% to 370 billion yen for 3-year plan from former plan. The firm uses 340 billion yen for expenditure compared with 240 billion yen for former plan. The firm improves steel production facilities mainly including blast furnace relining at Kakogawa and Kobe works.Nisshin Steel plans 145 billion yen of capital expenditure, investment and financing for new 3-year plan. The firm increases the capital expenditure to 137 billion yen, which is 2.1 times of former plan. The firm allocates 36 billion yen for growth along with 86 billion yen for maintenance.