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Nippon Steel - Steelmaking and Steel Fabrication in FY 2018-19

Steel News - Published on Tue, 14 May 2019

The Steelmaking and Steel Fabrication segment strived to rebuild its “strength in manufacturing” and “strength in sales and marketing” and restore its profit base, with safety as the foremost priority. In Japan, NSSMC continued to work on building optimal production frameworks, which included Wakayama Works’ shift to advanced blast furnace and Yawata Works’ construction of new continuous casting facilities. NSSMC also carried out ongoing initiatives to maintain and increase the soundness of facilities through the introduction of the latest facilities and refurbishing of existing facilities. Relining of a blast furnace at Hokkai Iron & Coke Corporation, which handles the Munoran Works’ up stream processes, and of a coke oven at the Nagoya Works are among these initiatives. Thcdcclinc in Japan’s working population was also addressed with activities to secure enough workers and to ensure succession to the next generation. They included promotion of diversity in hiring, succession of technical skills from a long-term perspective, personnel development measures, labor-saving measures (use of IT and automation) to cope with the worker shortage caused by the decline in the population, more stable production, and an increase in productivity.

Concerning overseas operations, NSSMC focused on deploying management resources in markets showing steady growth in demand and fields where it can apply the strengths of its technology and products, seeking to contribute to self-sufficient production in the countries concerned and increasing the profitability of its own overseas businesses at the same time. Since fiscal 2018, NSSMC has carried out and still continues proceedings for the joint acquisition of EssarSteel India Limited, an integrated blast furnace steelmaker in India, with ArcelorMittal to secure an integrated steelworks base in the growing Asian market. Upon completion of the acquisition, NSSMC and AcelorMittal will be able to capitalize on India’s growing steel demand in the medium- to long-term as a steel manufacturer with an integrated steelworks facility in India

Revenue and Profit
Consolidated results for fiscal 2018 were mainly affected by natural disasteis such as heavy rains and typhoons, an overall cost increase, stemming from a surge in prices of primary raw materials, rises in costs of commodity materials, other material procurement costs, and distribution costs, and by the negative impact of differences in inventory evaluations by NSSMC and its group companies. Meanwhile, in addition to corporate-wide efforts to implement measures to stabilize facilities and operations and the steady execution of cost reduction measures, positive factors included an improvement in steel product prices, driven mainly by a rise in overseas markets, especially in the first half of fiscal 2018, and profit improvement in business segments other than Steelmaking and Steel Fabrication. As a result, NSSMC posted revenue of JPY 6,177.9 billion, business profit of JPY 336.9 billion and profit for the year attributable to owners of the parent of JPY 251.1 billion.

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Posted By : Rabi Wangkhem on Tue, 14 May 2019
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