Nippon Steel will reduce production capacities to Kimitsa

In the coming years, Nippon Steel & Sumitomo will close the oldest of three domain furnaces at its largest metallurgical plant in the city of Kimitsa, located east of Tokyo to reduce the excess metallurgical capacities of the company. Reuters became known about this.

The stop of the blast furnace No. 3 in Kimitsa will reduce the production of unrefined steel by the company by 7%. In addition, Nippon Steel & Sumitomo, not seeing the prospects for the growth of demand for metal products, will delay the launch of 700 thousand tons per year planned for the end of this month at a metallurgical plant in the city of Vakaiama.

Nippon Steel & Sumitom appeared after the merger of the two largest Japanese metallurgical corporations: Nippon Steel and Sumitomo Metal Industries. According to market experts, the total metallurgical capacity of the new company is 43 million 500 thousand tons per year, which is almost one and a half times higher than all the metallurgical companies of Ukraine last year.

Meanwhile, as reported by Nippon Steel & Sumitomo, the information common in the media, according to them, "is premature and unofficial." The decision regarding the stopping of the blank and postponement of the launch of the new production is currently not yet adopted and the Nippon Steel and Sumitomo Metal Corporation will announce its medium -term management plan only after its final approval.