Kobe Steel has announced that it has begun serious consideration of introducing a scrap melting furnace at its Kakogawa Steel Works as part of its phased steel decarbonization strategy.
The planned scrap melting furnace will be installed at Kakogawa Steel Works and will have an annual production capacity of 700,000 mt. The decision-making period is scheduled for the next medium-term management plan period, beginning in fiscal year 2027, while operations are expected to start in the early 2030s. The approximate investment amount is JPY 100 billion.
The company said the facility would support greater use of ferrous scrap while maintaining compatibility with the existing blast furnace-converter process. The planned process would mix blast furnace hot metal with molten steel produced in the scrap melting furnace inside the converter.
According to Kobe Steel, this method would allow larger scrap inputs compared to the conventional blast furnace-converter route, reducing the use of blast furnace hot metal and lowering carbon emissions. The company also stated that the process would support resource recycling and meet customer demand for lower-emission steel.
Kobe Steel said the project fits its broader decarbonization approach, which includes higher HBI use in blast furnaces, biomass injection, energy-saving technologies, expanded scrap utilization and the development of high-grade steel production using large-scale innovative electric arc furnaces.