Japan Electric Furnaces Advance Capital Investment

Japanese electric furnace steel makers will activate their capital investment in and after fiscal 2006 ending March 2007 due to their favorable business conditions. They aim to reinforce high grade steels production and environmental equipments for the future. Japanese electric furnaces should advance their competitiveness with the investment when steels demand has decreased for public works and the inflow of cheaper imports seems to increase in Japan. Tokyo Steel Manufacturing will construct new steel works in Tahara City of Aichi Prefecture, Japan in 2009, with over 100 billion yen of the investment. The firm is likely to produce steel sheet for auto parts, steels for building construction and special steels there. Additionally the firm advances high-grade steel production and increases the production of steel sheet and plate for autos. In the future, Tokyo Steel Manufacturing plans to increase the steel sheet production ratio to 60% from current 40%.JFE Bars & Shapes plans to introduce an eco-friendly high-efficiency arc furnace at Sendai works in Miyagi Prefecture, Japan in 2007 to reduce production costs and CO2 emissions. The firm already introduced the electric furnace at Himeji works at the end of 2005, which cuts electricity usage by 40% and improves productivity by 30%. The furnace was applied to the aid project of businesses of rationalization of energy use in fiscal 2005.