Posted on 08 Dec 2020
Tokyo-headquartered Nippon Steel Corporation announced plans to raise output capacity at its steel plants outside Japan. At the same time, it plans to cut domestic steel capacity. This is in response to changing demand levels and the projected demands for the future.
According to Katsuhiro Miyamoto, Executive Vice President, Nippon Steel, the company has decided to focus on improving profits from overseas operations, by tapping the rising demand from automotive market. To this effect, it plans to materialize planned expansion of overseas capacities in mid-term.
The company had recently announced capacity expansion of its joint venture project with ArcelorMittal in India. The AM/NS joint venture’s capacity will be expanded to up to 15 million tonnes. Furthermore, it also plans major capacity expansion at its pellet plant in the country.
The company’s joint venture with ArcelorMittal in Calvert, Alabama, U.S. announced its plans to construct a new electric arc furnace. As a first step, a furnace of 1.5 million tonnes per annum output capacity is being considered.
Meantime, the domestic steel output and demand in the upcoming financial year is likely to remain flat. The company is expected to report net loss for the second consecutive year, primarily due to Covid-19 related factors.
Source:Scrap Monster
