Nikkei reported that Nippon Steel Engineering Co aims to double foreign sales to 40% of the total as a way of coping with the sluggish domestic economy under a medium term business plan running through fiscal 2015.

Spun off from parent company Nippon Steel Corporation in 2006, the engineering firm first aims to acquire large orders for offshore wind turbines, which are expected to rapidly increase in number in Europe. It has ample experience building seafloor pipelines and will use that technology in constructing the turbines. The company also hopes to win orders for gas to liquid plants as well as equipment for carbon capture and storage.

In the engineering, procurement and construction business, it will work to cut costs by 10% over the next two years, with a concrete initiative to be launched in house in September 2011.

Nippon Steel Engineering also intends to acquire or partner with foreign companies because there are limits to how much it can boost sales on its own. By winning more orders abroad, it is targeting revenue of around JPY 450 billion in fiscal 2015, up from JPY 254.9 billion in fiscal 2010 and aims to double operating profit to JPY 30 billion.

(Sourced from Nikkei Business Daily)