ID :
37442
Fri, 12/26/2008 - 05:53
Auther :
Shortlink :
https://oananews.org//node/37442
The shortlink copeid
JFE Steel to shut down blast furnace temporarily from mid-Jan.+
TOKYO, Dec. 25 Kyodo - JFE Steel Corp. said Thursday it will temporarily shut down one of its blast furnaces in Kurashiki, Okayama Prefecture, from mid-January to combat a sharp slowdown in demand for steel products due to the global economic downturn.
JFE will become the first major Japanese steelmaker to take the rare move of
closing down a blast furnace as a result of the fallout from the ongoing
worldwide financial crisis, while other steelmakers have tried to control
production levels through slowing down their operations.
The company said it decided to close one of the three Kurashiki blast furnaces
that has been run by West Japan Works since 1990 in view of production
efficiency and cost factors, bringing forward the timing of suspending the
aging facility for refurbishment.
The blast furnace has the capacity to produce about 3.25 million tons of crude
steel per year, representing about 10 percent of JFE's total annual production
capacity of 30.52 million tons in fiscal 2007.
JFE has already decided to further reduce crude steel production by 1.5 million
tons in the October-March period from the first half of fiscal 2008 in a
reduction that will be three times bigger than its initial plan to cut output
by 500,000 tons.
But it has been forced to take the additional step of halting its blast furnace
as its core clients, automakers, slash their output due to deteriorating
business conditions caused by shrinking global car sales.
With the latest step, JFE's production cut in the second half of fiscal 2008
will expand 2.5 million tons from the initial plan. JFE's crude steel
production in fiscal 2007 totaled 30,520,000 tons.
Steelmakers often try to avoid closing down furnaces except for regular
inspections or equipment renovations since it is difficult to restart a blast
furnace after melted iron turns solid.
JFE did not provide details of how long the temporary shutdown will last, but a
company spokesman said it will decide on when to start the refurbishment by
closely examining developments in steel demand.
Refurbishment could take anywhere from one to four months to complete.
==Kyodo
2008-12-26 00:09:37
JFE will become the first major Japanese steelmaker to take the rare move of
closing down a blast furnace as a result of the fallout from the ongoing
worldwide financial crisis, while other steelmakers have tried to control
production levels through slowing down their operations.
The company said it decided to close one of the three Kurashiki blast furnaces
that has been run by West Japan Works since 1990 in view of production
efficiency and cost factors, bringing forward the timing of suspending the
aging facility for refurbishment.
The blast furnace has the capacity to produce about 3.25 million tons of crude
steel per year, representing about 10 percent of JFE's total annual production
capacity of 30.52 million tons in fiscal 2007.
JFE has already decided to further reduce crude steel production by 1.5 million
tons in the October-March period from the first half of fiscal 2008 in a
reduction that will be three times bigger than its initial plan to cut output
by 500,000 tons.
But it has been forced to take the additional step of halting its blast furnace
as its core clients, automakers, slash their output due to deteriorating
business conditions caused by shrinking global car sales.
With the latest step, JFE's production cut in the second half of fiscal 2008
will expand 2.5 million tons from the initial plan. JFE's crude steel
production in fiscal 2007 totaled 30,520,000 tons.
Steelmakers often try to avoid closing down furnaces except for regular
inspections or equipment renovations since it is difficult to restart a blast
furnace after melted iron turns solid.
JFE did not provide details of how long the temporary shutdown will last, but a
company spokesman said it will decide on when to start the refurbishment by
closely examining developments in steel demand.
Refurbishment could take anywhere from one to four months to complete.
==Kyodo
2008-12-26 00:09:37
