JFE Holdings Inc, the parent company of Japan’s second-biggest steelmaker JFE Steel, plans to spend more than JPY 650 billion ($6 billion) over the next three years for the upgrade of domestic production facilities in order to raise productivity and competitiveness, according to Reuters.
Eiji Hayashida, the president of JFE Holdings, stated that the aim of the investment plans will be to meet growing demand from the automotive industry for lighter steel and new materials for production of more fuel-efficient electric and other cars.
Mr. Hayashida told Reuters in an interview that JFE Holdings spent more than JPY 650 billion in the past three years on domestic facilities and it will need to do it again for the next years to increase competitiveness. He also stated that their biggest fear is how far US President Trump will restrain trade and added that, if the US takes action to reduce imports, it may trigger retaliation by other countries.