Nagoya plant explosion to effect costs and steel supply
According to recent market reports Nippon Steel Corp. (NSC) of
Japan declared that they expect the explosion at its Nagoya plant, which took place last week, to cost approximately Yen 30 billion ($ 257 million). However NSC, forecasting Yen 85 billion ($728 million) operating profit for the first half, said that they will be able to recover slightly over 50% of the cost in the first half of current fiscal year, ending in March 2004.
Futhermore,
Japan's top auto maker Toyota Motor, which supplies steel sheets to Toyota's 15 other plants, has been seriously effected by the explosion at Nagoya plant. According to a company official's statement, they started to supply company' requirements from other plants of Nippon Steel, as well as other steel companies with names of these companies refused to be specified.
NSC stated that the plant will become fully operational by next year.