Japan-based Nippon Steel Corporation has stated that it will reduce its crude steel production capacity by 20 percent by 2025 under the company’s new five-year plan, shutting down its blast furnaces in response to declining domestic demand and with the aim of helping the country’s target of net-zero emissions by 2050. The company plans to shut a blast furnace at its Kansai Works in the first half of 2021, a year earlier than planned, and another blast furnace at its East Nippon Works by the end of 2024.
The blast furnace shutdowns and the previous measures taken regarding green technologies will affect more than 10,000 employees. The workforce will be reduced by 2025.
The company’s new five-year plan requires JPY 2.4 trillion ($22.12 billion) in capital expenditures. Nippon Steel will also spend JPY 600 billion ($5.5 billion) to expand its operations in India and to acquire steel mills in other countries.
The company also aims to lower carbon emissions from its operations by 30 percent by 2030. According to the company’s statement, realization of the blast furnace hydrogen reduction method will require research and development expenses of approximately JPY 500 billion ($4.60 billion) and JPY 4-5 trillion in investments in facilities. Moreover, it is possible that as of 2050 the production cost of crude steel, even in the best-case scenario, will be more than double that of current costs.