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Nippon Steel Responds to Quake Disaster

Nippon Steel extended its heartfelt sympathy and condolences to all people in any way afflicted by the recent earthquake in the Tohoku-Kanto areas, as well as its “hope that they will be able to regain strength and normal life from the earliest possible recovery of the region.”

The company also provided an update on the status of its operations as of March 22, 2011.

Regarding its Kamaishi Works, the company said it was still doing its utmost to locate employees of the company, its group-members and affiliates, as well as employees families. Production has been suspended because part of the compound was flooded by the tsunami.

Port facilities at the Kamaishi Works were also damaged, and the company has initiated an on-site survey with a view to rebuilding them.

To compensate for Kamaishi’s production curtailment, the company has started manufacturing Kamaishi orders at its other steelworks and group-member companies so that supplies to customers can be ensured.

The company said that the Kimitsu Works has resumed ironmaking and steelmaking operations, now reaching the same production levels as before the earthquake. With the acute power shortages throughout the whole Kanto area, the Kimitsu Works is operating its Kimitsu Cooperative Thermal Power Company Inc. generating station at full capacity to permit a maximum supply of electricity to Tokyo Electric Power Company (TEPCO). Established in 1967 jointly by Nippon Steel and TEPCO, the station generates electricity using by-product gases from the ironmaking process which is then supplied to the two companies.

Because of the general power shortage, a portion of the Kimitsu Works’ rolling and finishing processes are being operated in power savings mode.

The company noted that all of its steelworks except for Kamaishi can deliver products to the quake-stricken area without the slightest hitch. However, it might be quite a while before reconstruction of the unloading ports in the Tohoku area can be completed. The company says it is monitoring the progress of recovery in the region and also the resumption of production by customers, and would, if necessary take alternative routes and conveyances as necessary to re-start deliveries to them gradually. The company also said it is prepared to discuss locational changes for any customers who wish to shift their manufacturing operation from one plant to another.

The company also noted that it has already begun its maximum response to alliance partner Sumitomo Metal Industries’ request for support.

Nippon Steel and its group companies say they are committed to direct energy to repairing the damage to facilities and infrastructure, and are fully aware of their responsibility to supply steel products needed for rebuilding the stricken areas and customers’ resumption of production. The company also indicted its wish to contribute, in its own way, to the reconstruction of the whole nation.