Japanese steelmaker Kobe Steel has announced that, to increase the competitiveness of its steelworks, it has decided on large-scale investments including a new hot-metal treatment plant, a new heat treatment furnace for steel plate, and high-efficiency in-house power generation equipment. Construction work under these investments has already commenced.
Within the scope of the restructuring its steel business, the company plans to construct a new continuous bloom caster and secondary refining equipment at its Kakogawa works. Kobe Steel will also increase the production capacity of its bloom mill No. 2.
According to Kobe Steel's statement, the liquis steel production at Kobe works will be transferred to the Kakogawa works, with the company planning to shut down the blast furnace at Kobe works around the financial year 2017-18. This move will eliminate surplus liquid steel production capacity and increase cost competitiveness.
Additionally, Kobe Steel stated that in the first quarter of the financial year 2013-14 it will post an impairment loss of approximately JPY 18.5 billion ($181.84 million) on business assets, which will be taken as an extraordinary loss, in accordance with the decision to reform the structure of its steel business.