The Japanese steel producer Sumitomo Metal Industries, Ltd (Sumitomo Metals) has announced its capital expenditure plans for fiscal year 2008.
The steelmaker's investments in fiscal year 2008 include Yen 180 billion ($1.723 billion) on a consolidated basis and Yen 55 billion ($526 million) on a non-consolidated basis in plants and equipment.
Sumitomo Metals has also revealed details of its FY 2008 investment plans for its subsidiaries Wakayama Steel Works and Kashima Steel Works.
Sumitomo Metals aims to increase capacity for super high-end seamless pipes to 100,000 metric tons a year at Wakayama at a total cost of Yen 35 billion ($336 million), with the construction period reaching conclusion in July 2008.
In the context of Wakayama Steel Works' renewal of upstream facilities at Sumikin Iron and Steel Corporation, Wakayama will continue with the construction of a coke oven and the modernization of the sintering plant and coke dry quenching plant, which will be completed in March 2010 at the total investment cost of Yen 67 billion ($643 million); in addition, Wakayama will proceed with the construction of a new No.1 blast furnace which is scheduled to be completed by June 2009 and also the construction of a new No. 2 blast furnace to be completed by October 2012. The investments in the blast furnaces No.1 and No.2 total Yen 80 billion ($668 million) and Yen 23 billion ($221 million) respectively.
Kashima Steel Works' investment for increasing its capacity for ultra high strength (X 100) line pipes is still in progress and expected to reach completion in March 2011. This work sees a total investment of Yen 10 billion ($96 million).
Moreover, Sumitomo Metals' (Kokura) investment in the innovation of its steelmaking process, which involves reconstruction of the dephosphorization furnace, modernization of the secondary refining process and renewal of the continuous caster, is still continuing at a total cost of Yen 23 billion ($221 million).
With the completion of these investments Sumitomo Metals will be able to increase its competitiveness in manufacturing and will also improve its product line-up in strategic areas like the energy and automotive sectors.