Shinkansai Steel to Integrate Flat Bar Rolling Lines

Osaka based electric furnace steel maker, Shinkansai Steel Corporation decided to integrate two rolling lines in Hoshida plant, Osaka, into one rolling line during fiscal 2012 starting in October 2011. The company decided the optimization when domestic steel demand is shrinking, sales competitions are severing with offshore mills and then reorganization seems unavoidable for Japanese electric furnace steel mills. The company will stop No.2 rolling line for small-size flat steel bar in Hoshida plant and integrate the production into No.1 rolling line presently dedicated to produce middle-size flat steel bar. The integration will complete before fiscal 2013 without layoff.

Shinkansai Steel is a major supplier of flat steel bar, operating Sakai plant (one steel making line and one rolling line) and Hoshida plant (one steel making line and two rolling lines) in Osaka. The company produces flat steel bar, round steel bar and square steel bar. Hoshida plant mainly covers small- and middle-size flat steel bar. Hoshida plant’s current production is approximately 13,000 tonnes per month though the output was 18,000 tonnes per month at peak in current ten years.

In Japan, demand for structural steels has shrunk along construction market mid-long-term decline and manufacturing industry’s outflow to overseas. Meanwhile, international sales competitions are severing due to strong yen trend and offshore mills’ catch-up. Domestic demand for flat steel bar has downsized by 30-40% from the peak though tough competitions still continue among the makers. Domestic players are also concerned on increase of flat steel bar import.