Nippon Steel expects to lower its loss due to shutdown of Nagoya mill

Nippon Steel expects to lower its loss due to shutdown of Nagoya mill

Japan steel producer Nippon Steel Corporation (NSC) has recently announced that the cost caused by the explosion at Nagoya mill will be lower than the initial estimated cost of Yen 30 billion ($260 million). The officials of the company state that the production is recovering, hence the profit of the company will be less affected from the explosion. The shutdown of Nagoya plant prevented the company from supplying sheet metal to automakers, such as Toyota, Honda and Mitsubishi Motors, however NSC announced that it increased its operating profit forecast for year-end due to strong demand in Asia, as previously reported by SteelOrbis. In the framework of reconstruction processes, the company has been able to operate two blast furnaces, coke ovens, cold and hot rolling mills, continuous annealing, galvanizing and tinning lines in a very short time. Furthermore, it is stated that the company has increased its output more than expected and recovered over 90% of the estimated production rate for end-September by now. The officials also add that the concrete figures, which are to be released by early October will reveal the exact financial input and output of the company.