Tokyo Steel to Increase Operation Rate of Tahara

Tokyo Steel Manufacturing’s president Toshikazu Nishimoto said to a reporter of Japan Metal Bulletin the firm plans to produce 750,000 tonnes at sheet steel making Tahara plant in fiscal 2011 started April. The plant will increase the production level to 500,000 tonnes in the second half and to 1.5 million tonnes in fiscal 2012.

Mr. Nishimoto said the production was only 150,000 tonnes at Tahara plant in fiscal 2010 due to delay of the production ramp up while the more than 10 billion yen per year of depreciation impacted the results. The firm cannot cover the negative impact while the other 4 plans posted profit.

Mr. Nishimoto said Tahara plant started test running at pickling line after the setting completion in March. He said the firm gets Japan Industrial Standards for the 5 feet products in the summer while the line starts shipment without JIS until then.

Mr. Nishimoto said the firm has better cost advantage when higher raw materials cost pushes integrated steel makers’ cost. The firm tries to develop new users in automobile, appliances and construction and industrial machinery.

Mr. Nishimoto said the firm expects to get approval of minister for original column standard with property as Box Column Roll (BCR) in autumn.