Kobe Steel Is to Shut Down a Blast Furnace and Other Upstream Equipment

It is learned that Japanese steelmaker Kobe Steel is to shut down a blast furnace and other upstream equipment at its Kobe Works plant in western Japan in the financial year 2017-18. The decision came after the announcement of ¥ 50.2 billion loss in the year to March 31, struggling against sluggish demand from shipbuilders and fierce competition from rivals such as Posco and Baosteel. The company’s president, Hiroya Kawasaki, said that it is to turn around its loss-making iron and steel business. He expects to post ¥ 80 billion~¥ 100 billion in ordinary income in 2015-16, including ¥ 30 billion from its steel business. The company expects to keep its domestic crude steel production capacity at 7 million tons and sees domestic steel product demand at 50 million to 55 million tons in 2020-21, down from current 61 million tons. The company also said that it will consider using the land at Kobe Works on its power supply business, after the shutdown of the blast furnace.