JFE Steel Corporation announced today that it will shut down the upstream processes and hot rolling equipment in its Keihin district by September 2023 in accordance with a plan to complete the revamping of the Chiba district No. 6 blast furnace by December 2022, which also was announced today.

Both moves reflect JFE Steel’s earlier announcement, made on March 27, that in response to fundamental changes taking place in both the Japanese and international steel industries, the company will implement structural reforms centered on transitioning JFE Steel’s operating configuration from eight blast furnaces to seven and reorganizing production operations to focus more strategically on key products for enhanced competitiveness.

JFE Steel previously decided to shut down upstream processes and hot rolling equipment in the Keihin district sometime within FY2023 (ending March 2024). The September 2023 timing is the result of a detailed review carried out by the company’s Special Initiatives Headquarters, which is headed by JFE Steel President Yoshihisa Kitano.

Following the shutdown, other Keihin facilities will continue to support the East Japan Works’ manufacture of steel pipes and steel plates mainly for construction. Semi-finished products will be supplied from West Japan Works and other areas.

JFE Steel expects these various structural reforms to contribute a total of approximately 85 billion yen to annual profit.

The changes will include efforts to improve operational efficiency and productivity through measures such as actively adopting advanced IT and data science. JFE Steel will also steadily move forward with efforts to streamline its entire organization and systems, including departments within its head office.

To ensure that stakeholders understand the company’s various initiatives, JFE Steel will provide detailed explanations to all parties concerned, including customers, business partners, employees, local communities, governments, shareholders and investors.

Going forward, JFE Steel will continue making every effort to strengthen the competitiveness of its domestic manufacturing base and the earnings power of its overseas businesses to further enhance the company’s corporate value over the long term.

About JFE Steel Corporation

JFE Steel Corporation, one of the world’s leading integrated steel producers, was established through the consolidation of NKK Corporation and Kawasaki Steel Corporation in 2003. The company operates several steelworks in Japan and numerous branch offices and affiliates throughout the world. JFE Steel leverages world-class technologies and know-how to produce a wide range of products based on its “Only One, Number One” strategy of focusing on unique and best-in-class products. The company reported consolidated sales of 3,900 billion yen in 2018 and consolidated crude steel output of 27.88 million tons in the fiscal year ended March 2019.

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