Japan Major 5 Steels Plan 818.2 Billion Yen Capital Expenditure

Japanese major 5 steel makers plan total around 818.2 billion yen of consolidated capital expenditure in fiscal 2010 started April. They try to keep high level of expenditure under severe business condition while the total value is 2.1% lower than fiscal 2009 level. They improve the manufacturing capacity as the base of the profitability.

They plan expenditures for renewal of old facilities including blast furnace, energy saving and carbon dioxide emission reduction, reaction for lower grade raw materials and improvement of international competitiveness in fiscal 2010. JFE Steel plans higher expenditure than fiscal 2009 and Nippon Steel plans more than 300 billion yen of expenditure for 4 years in a row while Sumitomo Metal Industries, Kobe Steel and Nisshin Steel also plan aggressive expenditure.

Nippon Steel plans around 320 billion yen of consolidated capital expenditure in construction cost in fiscal 2010, which is 3% lower than fiscal 2009 level. The firm plans expansion and relining for No.2 blast furnace at Kimitsu works for around 40 billion yen and new No.5 coke oven at Nagoya works for around 60 billion yen for better competitiveness for the upper stream operation.

JFE Steel plans 232.2 billion yen of consolidated capital expenditure in outlay base in fiscal 2010 compared with 212.1 billion yen in construction cost in fiscal 2009. The firm plans expansion and relining of No.3 blast furnace at Fukuyama area of West Japan works for around 29 billion yen toward annual 33 million tonnes of raw steel output capacity.

Sumitomo Metals plans around 120 billion yen of consolidated capital expenditure in construction cost in fiscal 2010, which is 12.1% lower than fiscal 2009 level. The firm plans second phase of upstream renewal at Wakayama works including new No.2 blast furnace and expansion of steel making shop, expansion of high strength large diameter line pipe production at Kashima works, steam generator tube expansion at steel tube works and second phase of steel making shop renewal at Sumitomo Metals (Kokura) including new dephosphorization furnace.

Kobe Steel plans 120 billion or less of consolidated capital expenditure in construction cost in fiscal 2010. The firm plans renewal of power generation boiler, new denitration facility of sinter plant and press line maintenance at casting and forging plant at Kakogawa works.

Nisshin Steel announced on Wednesday the firm plans 26 billion yen of consolidate capital expenditure in construction cost in fiscal 2010, which is 9% lower than fiscal 2009 level. The firm plans 39 billion yen of depreciation in fiscal 2010 as fiscal 2009. The firm plans renewal of hot strip mill at Kure works, cold rolling mill at Shunan plant, continuous pickling line and cold rolling mill at Sakai plant.