Nippon Steel Plans Overseas Expansion amid Domestic Decline
Reuters reported that Nippon Steel Corp is planning to raise output capacity in overseas markets such as India and the United States and reduce it in Japan to
Reuters reported that Nippon Steel Corp is planning to raise output capacity in overseas markets such as India and the United States and reduce it in Japan to align with future demand levels. Nippon Steel Executive Vice President Mr Katsuhiro Miyamoto told Reuters in an interview “Our imported intent task is to improve our overseas profits by capitalising on recovering global demand from automobiles. In the mid-term, we want to expand our production capacity overseas where demand is expected to increase.”
Mr Miyamoto told “Nippon Steel is also considering to build a new electric furnace at its US joint venture with ArcelorMittal in Calvert in Alabama. We may build a furnace of 1.5 million tonnes of annual output capacity as a first step.”
Nippon Steel and ArcelorMittal jointly bought India’s bankrupt Essar Steel last year, which has an annual capacity of 9.6 million tonnes. The companies plan to boost the capacity of the new venture, ArcelorMittal Nippon Steel India, to 12-15 million tonnes as planned and further in the future. AMNS India will also look to expand capacity at its pellet plant on the east coast of India.