Japan-based Nippon Steel & Sumitomo Metal Corp. (NSSMC), the world's second biggest steel producer, has announced the outlines of its mid-term management plan.
Accordingly, the company plans to streamline its operations given that competition in the East Asian market is expected to intensify. The steelmaker will shut down the blast furnace No. 3 at its Kimitsu steelworks by the end of the financial year 2014-15, while maintaining crude steel output levels by optimizing production at the two remaining blast furnaces. NSSMC will halt operations at its continuous caster No. 5 around the first half of the financial year 2013-14, while it plans to shut down one of its basic oxygen furnaces around the first quarter of the financial year 2015-16, both at the Kimitsu works.
Regarding operations at its Wakayama steelworks, NSSMC stated that the launch of the new blast furnace No. 2 has been postponed, while production will continue with blast furnaces Nos. 1 and 5.
The steelmaker will also make some adjustments at its rolling mills, improving the efficiency of production lines, expanding overseas production lines by advancing its global strategy and halting production lines which are relatively less competitive.
The company plans to invest approximately JPY 100 billion ($1.04 billion) per year in strategic investments over the next three years.
