20:23 on February 12 due to a decrease in exports due to suspension of production line at a major steel industry JFE
A major steel company, JFE Holdings, announced that it will suspend some production lines at steelworks in Chiba and Kawasaki. As the environment surrounding the steel industry becomes increasingly severe, including a decline in exports, the company will consider further revising its production system.
According to the announcement, JFE Holdings will suspend part of the steel plate processing line at the East Japan Works in Kawasaki and Chiba, and consolidate it at steel works in Kurashiki, Okayama Prefecture.
Approximately 360 employees working on the production line being suspended will be relocated within the group. Due to a decrease in occupancy rates due to a decrease in exports and other factors, the cost reduction effect of stopping production lines is expected to be several billion yen.
JFE Holdings has also made clear its forecast for the fiscal year ending March. The net profit is expected to be 13 billion yen, 92% less than the previous year, due to a decrease in exports of steel products due to the trade friction between the United States and China.
At a conference, Vice President Masashi Terabata said, "We will consider revising our domestic and overseas production systems in response to fluctuations in demand." Regarding the steel industry, Nippon Steel, the largest company, has announced a major cutback in production facilities, including the full closure of the Kure Works in Hiroshima Prefecture, and there is a movement to review the production system.