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News Release

JFE Steel Corporation

JFE Steel to Raise Steelmaking Capacity at West Japan Works Fukuyama District
Aiming to Achieve Companywide Annual Crude Steel Capacity of 33 Million Tons

TOKYO — Five years have passed since the merger that created JFE Steel Corporation; during that time, the company has worked diligently to improve its financial base and expand production, primarily of high-end steel. The result of these efforts has been an increase in domestic crude steel output capacity from an initial 26.5 million tons to 30 million tons per year. Overseas, the company has improved its ability to supply high-end steel by establishing Guangzhou JFE Steel Sheet Co., Ltd, a Chinese joint venture, among other activities.

To meet further growth in both domestic and overseas demand for high-end steel, JFE Steel intends to spend 150 billion yen on plant investment to secure an additional 3 million tons of high-end steel output, aiming to expand its domestic crude steel production by approximately 10% to 33 million tons per year.

The West Japan Works is the world's largest steelworks, with current annual crude steel production of 21.5 million tons. JFE Steel plans to increase its capacity to 23 million tons per year by raising production capacity at the Fukuyama plant by a net 1.5 million tons to 13 million tons in an undertaking that will witness the construction of a new slab continuous caster and other steelmaking facilities.

Details of the facilities to be expanded are as follows:

  1. Slab continuous caster (new construction):  2.4 million tons/year
    Degasser (expansion)
    Slab finishing line (new construction)
  2. Operation start-up:     First half of FY beginning April 2010 (planned)
  3. Total investment:     Approximately 50 billion yen
JFE Steel's crude steel production forecast for FY ending March 2008:
30.3 million tons (non-consolidated), 34.0 million tons (consolidated)

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