Tokyo Kohtetsu Accelerates Global Procurement for Cost Down

Japanese major steel shapes maker, Tokyo Kohtetsu, accelerates global procurement for cost reduction. The firm has adopted 14-inch electrode made in China for its ladle furnace, converted from electrode made in Japan. The firm plans trial use of 20-inch electrode made in India for its electric furnace within March.

Tokyo Kohtetsu has intentionally raised procurement rate of overseas materials including electrode, refractory block, mill roll and other substantial items. In recent years, Chinese and Indian electrode makers are increasing their presences in global market with price competitiveness and improving quality. Tokyo Kohtetsu expects for trial of India’s electrode since the electrode has already been adopted in Europe.

The firm tries to reduce operation cost not only by global procurement but also by improvement of energy efficiency. The firm has converted air conditioner system to heat pump type at Oyama plant, Tochigi, Japan. Heat pump type air conditioner system contributes to electric power cost down by more than 30%. The firm also introduced heat pump type water heater in Oyama plant’s office building with approximately 26 million yen capex.

Tokyo Kohtetsu aims to improve its profitability through continuous cost down activities.