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JFE Steel Group to Integrate its Electric Furnace Operations
06/07/2011 - JFE Steel Corp. announced plans to integrate four of the group’s electric furnace-based companies: JFE Bars & Shapes Corp., Daiwa Steel Corp., Tohoku Steel Corp. and Toyohira Steel Corp.
JFE Steel Corp. announced plans to integrate four of the group’s electric furnace-based companies: JFE Bars & Shapes Corp., Daiwa Steel Corp., Tohoku Steel Corp. and Toyohira Steel Corp. The integration is to take affect April 1, 2012.
Sharp falls in demand for construction steel materials have led to an increasingly severe business environment in Japan, causing electric-furnace steelmakers to reorganize their operations in order to compete. Against this backdrop, the JFE Steel group has determined that integrating its electric furnace operations will enable the group to remain a viable producer of reinforcing steel bars, thereby helping to ensure sustainable growth going forward.
Among the group’s electric-furnace operations halted by the Great East Japan Earthquake, Tohoku Steel will not resume production but will retain only its sales function. Products will be supplied to Tohoku Steel by JFE Bars & Shapes Kashima Works in Ibaraki Prefecture and Daiwa Steel Tobu Works in Saitama Prefecture, both of which manufacture reinforcing steel bars.
The company noted that it would make all possible efforts to transfer Tohoku Steel employees formerly involved with production to JFE Steel and other group companies.
JFE Bars & Shapes Sendai Works in Miyagi Prefecture, which also had to halt production after the earthquake, will restart its steel bar plant in mid-July and its wire rod plant in early August. The steelmaking plant and slab mill are scheduled to come online sequentially in mid-August, and overall production is expected to return to pre-earthquake levels by October.
The company also said that, going forward, it will consider other possible strategic consolidations to further optimize its production and sales structure.
Located in Minato-ku, Tokyo, JFE Bars & Shapes Corp. manufactures and sells products including bars & shapes, steel bars and wire rods. With 937 employees, the company is owned 100% by JFE Steel Corp.
Located in Kita-ku, Osaka, Daiwa Steel Corp. manufactures and sells steel bars for concrete reinforcement. With 313 employees, the company is owned 94.7% by JFE Steel Corp., 5.3% by Metal One Corp.
Located in Sendai, Miyagi Prefecture, Tohoku Steel Corp. manufactured and sold steel bars for concrete reinforcement. With 129 employees, the company is owned 94.2% by JFE Steel Corporation, 3.3% by JFE Shoji Trade Corp., 1.3% by Marubeni-Itochu Techno Steel Inc., and 1.3% by Itochu Metals Corp.
Located in Sapporo, Hokkaido, Toyohira Steel Corp. manufactures and sells steel bars for concrete reinforcement and manufacture of bridges. With 130 employees, the company is owned 100% by JFE Steel Corp.
