Nippon Steel, the largest steel company, has reviewed its domestic production system and announced that it will suspend blast furnaces in Ibaraki Prefecture, as well as suspend and consolidate steel production lines.
With domestic demand for steel declining, the issue is whether we can improve production efficiency and strengthen our earnings base.
Nippon Steel announced on the 5th that it will review the production system of its domestic steelmaking business, suspending one blast furnace at a steelworks in Ibaraki prefecture by March 2025, and one blast furnace at a steelworks in Wakayama prefecture. It has been announced that the suspension period will be advanced by one year to September.
In addition, the production line for steel plates used for shipbuilding at steelworks in Ibaraki Prefecture will be suspended and consolidated at steelworks in Chiba and Oita prefectures, as well as steel pipes used for thin plates and pipelines for automobiles. We will reduce the domestic system by suspending production facilities in Wakayama, Chiba, and Osaka prefectures.
Along with this, the company plans to rationalize the personnel of 10,000 people including partner companies.
On the other hand, the company plans to increase production facilities for steel materials and motor materials used in electric vehicles, etc., for which demand is expected in the future. The issue is whether it can be strengthened.