Japan-based steel producer JFE Steel Corporation has decided to restructure its steel sheet business as part of efforts to strengthen the resilience and competitiveness of its domestic manufacturing operations in response to structural changes in Japan’s steel market.
JFE Steel to consolidate sheet production across key works
According to JFE Steel Corporation, the restructuring initiative forms part of its long-term “JFE Vision 2035” strategy and its “Eighth Medium-term Business Plan,” which aim to reorganize domestic production structures and business operations.
The company stated that it plans to suspend operations at the pickling line at its East Japan Works (Keihin) by the end of the fiscal year 2025-26. Following this, pickled steel sheet production will be consolidated at East Japan Works (Chiba) and West Japan Works (Kurashiki and Fukuyama).
In addition, JFE Steel Corporation noted that it will suspend operations at the continuous galvanizing line No. 4 and other sheet-related facilities in the Keihin district by the end of the first half of the fiscal year 2027-28. Continuous galvanizing production will be consolidated at West Japan Works (Fukuyama), while cold rolled special steel sheet production will be concentrated at East Japan Works (Chiba).
Keihin to shift focus to plates and pipes
According to the company, the Keihin district will be repositioned as a manufacturing hub for eastern Japan, specializing in plate and steel pipe production. JFE Steel Corporation stated that the site will utilize high-quality semi-finished products supplied from other districts to ensure stable supply to the building materials, energy and infrastructure sectors.
The company emphasized that this reorganization will strengthen product-specific production systems and improve efficiency on a nationwide scale.
Cost reductions to support profitability
JFE Steel Corporation stated that the suspension of selected facilities is expected to reduce fixed costs and increase annual profit by approximately JPY 10 billion.
The company added that reallocating management resources toward growth areas and high-value-added products is expected to enhance its medium- to long-term profitability.