Japanese steelmakers to expand production
Japanese sources report that four major Japanese steelmakers announced plans to spend a total of around Yen 600 billion ($5.1 billion) over a four-year period to expand production of high grade steel used in the automotive industry and in the energy sector. Nippon Steel Corp (NSC) will invest about Yen 220 billion ($1.8 billion), JFE Steel Corp will invest Yen 150 -180 billion ($1.2-1.5 billion), Sumitomo Metal Industries (SMI) will invest about Yen 150 billion ($1.2 billion), and Kobe Steel Ltd will invest around Yen 60 billion ($511 million). According to the sources, NSC, JFE, SMI and Kobe will increase their ratios of high grade steel from the current 70 percent to roughly 80 percent by upgrading seven of their 26 blast furnaces in Japan.