JFE Steel Eyes Early Start of No.4 Galvanizing Line at Fukuyama

JFE Steel will start operation of the new no.4 continuous galvanizing line at Fukuyama area of West Japan works as early as January 2007, which is 3 month earlier than the original plan. The firm tries to meet the growing demand from automakers. The firm might keep operating the no.1 galvanizing line depending on the demand though the firm planed to stop the operation after the commission of the no.4 line.

The firm constructs the no.4 galvanizing line with 600,000 tonnes of annual output capacity at Fukuyama for around 18 billion yen. The firm will start the test operation in October 2006 and produce hot-dip galvannealed steel sheet for automotive exposed panel at the new line. The firm will keep the operation of no.1 galvanizing line with 300,000 tonnes of capacity, which produces galvannealed and galvanizing steel sheet, even after the start of no.4 line. Fukuyama firm will expand the galvanizing capacity by 50% to annual 1.8 million tonnes after the commission of the new line. The West Japan works has 2.3 million tonnes of galvanizing capacity including 500,000 tonnes of no.1 galvanizing line at Kurashiki area.

The firm also starts the new coke oven D of the no.5 coke plant at Fukuyama in the end of March 3 month ahead of the schedule. The firm tries to reduce the cost by the early start of the new oven, which the firm builds for 11 billion yen. The firm increases the annual coke output capacity by 500,000 tonnes to 5.16 million tonnes. Fukuyama can produce all coke for the self-support though Fukuyama imports some coke and source the additional coke from the East Japan works to increase the raw steel output. The new oven can reduce cost for the expensive coke import and freight from other works.