The largest Japanese steel producer Nippon Steel has announced its decision to consolidate its major capacities into five steelworks to enhance competitiveness. As a result, from April 1, 2020, when the consolidation will be finished, the group will operate just six steelworks in total.
Four mills of Nippon Steel, located in the eastern part of Japan (the Kashima Works, Kimitsu Works, Bar & Wire Rod Unit at Kamaishi Works, and Titanium Unit at Naoetsu Works) will be integrated into the East Japan Works. Crude steel production at these capacities was 15.18 million mt in the last financial year, the largest among all steelworks. A newly formed six-works structure will be integrated from the viewpoints of the geographical relationships of steelworks, their production, quality, and logistical relationships, human resources, technologies and other factors, according to the company’s press release.
The second largest steelworks of Nippon Steel after consolidation will be named the Kyushu Works (the Yawata Works, Oita Works, and Hikari Titanium Production Division of the Titanium Unit) with a production of 13.53 million mt last year. The Wakayama Works, Amagasaki Works of the Pipe & Tube Unit, and Osaka Steel Works of the Railway, Automotive & Machinery Parts Unit will be reorganized as the Kansai Works.
The Hirohata Works will be integrated with the Kure Works, Sakai Works, Toyo Works, and Osaka Works of Nippon Steel Nisshin Co. and will create the Setouchi Works. The Muroran Works of the Bar & Wire Rod Unit will be renamed as the Muroran Works. The Nagoya Works will not be involved in the consolidation process and will the sixth facility of the company.
“The restructuring will ensure advances in manufacturing capabilities and enhanced autonomy and efficiency of manufacturing workplaces,” Nippon Steel said in the press release.
