JFE Engineering to Stop Steel Structure Business

JFE Engineering Corporation announced on Tuesday the firm terminates building steel structure business. The firm will close steel structure making Shimizu plant in Shizuoka in March 2013 after all construction work finish. The firm also terminate fabricating subsidiary, JFE Technophenix. JFE Engineering already stopped new order receiving on the day.

JFE Engineering suffered from lower profitability from building steel structure business under severe price competition after the financial crisis. The firm decided the withdrawal from the business when the firm posted the loss again for fiscal 2011 ended March 2012 despite the effort for cost cut.

Shimizu plant has production capacity of 3,000 tonnes per month. The plant makes steel structure including for super-high building and coast protection facilities including hybrid caisson. JFE Engineering transfers the production of hybrid caisson production to Tsu plant in Mie.

JFE Engineering will convert the employees of building steel structure business to other businesses. The firm calls back temporary posting staffs, which account about half of slightly more than 100 employees of JFE Technophenix. JFE Engineering supports the subsidiary’s proper staffs to seek another job.