Japan's fourth largest steelmaker, Sumitomo Metal Industries Ltd (Sumitomo Metals), has announced its plans to build a second new blast furnace to replace the No.5 furnace currently in operation and also to upgrade steelmaking facilities at the Wakayama Steel Works.
The total value of the planned investment is approximately Yen 90.0 billion ($784 million). The investment in question, combined with the investment for the No.1 blast furnace which is currently under construction to replace the existing No.4 furnace, will allow Wakayama Steel Works to increase its annual crude steel production capacity to five million mt upon completion in the second half of 2012.
In a statement on the investment, Sumitomo said that the increased crude steel output will be used to execute the growth strategy of Sumitomo Metals' sheet and plate business, as well as to expand and enhance ongoing cooperation with Nippon Steel Corporation and Kobe Steel Ltd. by increasing the supply of slabs to these companies.