JFE Holdings to Seek Better Profitability under New 3-Year Plan

JFE Holdings announced on Friday the firm tries to improve profitability and long term corporate value under 3 years plan through fiscal 2011 ending March 2012. The steel business accelerates innovative technology development and manufacturing platform improvement including expansion to 33 million tonnes of domestic raw steel output capacity as no.1 supplier of high valued products. The group improves the profitability along with better financial base and restructuring for other businesses.

The group accelerates next generation technical development including innovative process and application technology and new products. The group keeps high level research and development budget for the 3 years as more than 40 billion yen in fiscal 2008. The group also seeks world best technology in environmental and energy saving technology.

JFE Steel tries to increase only 1 and no.1 products weight from current 30%. The firm will expand the domestic raw steel output capacity by 3 million tonnes to 33 million tonnes for the parent firm and 37 million tonnes in consolidated base in near future to meet growing demand for high valued steel products in longer term while the firm holds the expansion plan under uncertain business condition.

The steel unit improves the stable procurement of raw materials by investment to mining property and expanding cheap and low quality materials weight. The firm accelerates to share the best practice in the plants to improve the production ability including quality, yield, lead time and production cost.

The holding company tries to improve the net debt equity ratio to 50% from 85% at end of March 2009 by improving operating cash flow and reducing debt preparing for major investment to next growth.