Japan’s three major integrated steel producers, Nippon Steel, JFE Holdings, and Kobe Steel, plan to invest a total of 985 billion yen (about USD 6.7 billion) in capital expenditures for fiscal 2024.
The companies are focusing on improving product competitiveness and decarbonization targets. A significant portion of their investments are aimed at expanding production lines for high-performance products such as electrical steel sheets, which are essential for the growing vehicle electrification market.
Nippon Steel will increase its investment by 4.9% to 480 billion yen (about USD 3.3 billion), JFE Holdings will increase it by 12.7% to 390 billion yen (about USD 2.7 billion), and Kobe Steel will increase it by 9.3% to 115 billion yen (about USD 783 million). The companies’ investments had decreased by 10% in the two-year period to fiscal 2021 but have continued to increase since then.
The companies are also prioritizing strengthening local facilities to improve product quality, especially in the automotive sector. For example, Nippon Steel is renovating its Nagoya Works plant, a key facility for producing steel sheets used in the automotive industry, and is expected to be completed in fiscal 2026. In addition, JFE and Nippon Steel are expanding production capacity for electrical steel sheets, with JFE making significant progress at its West Japan Works.
Going forward, all three companies are expected to make major investments in decarbonization efforts. Nippon Steel is considering replacing a blast furnace at its Yawata Area with an electric arc furnace, while JFE is planning a similar move at West Japan Works, aiming for operations by fiscal 2027. Investment decisions are expected within the current fiscal year.
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