Nippon Steel plans to increase production at overseas steel plants

Nippon Steel Corporation, headquartered in Tokyo, has announced plans to increase production capacity at its steel mills outside of Japan. At the same time, it is planned to reduce domestic steelmaking capacities. It is a response to changing levels of demand and projected demand for the future.

According to Katsuhiro Miyamoto, executive vice president of Nippon Steel, the company has decided to focus on increasing profits from overseas operations, taking advantage of the growing demand in the automotive market. In this regard, in the medium term, it is planned to implement the planned expansion of foreign capacities.

The company recently announced the expansion of the capacity of its joint venture with ArcelorMittal in India. The capacity of the AM /NS joint venture will be increased to 15 million tons. In addition, the company is also planning a significant expansion of production capacity at its pellet plant in the country.

The company's joint venture with ArcelorMittal in Calvert, Alabama, USA, has announced plans to build a new electric arc furnace. A furnace with a capacity of 1.5 million tons per year is considered as a first step.

Meanwhile, domestic steel production and demand are likely to remain unchanged in the coming fiscal year. The company is expected to report a net loss for the second consecutive year, mainly due to factors related to Covid-19.