Nippon Steel Likely to Halt Blast Furnace in Wakayama

Economy

Tokyo, Feb. 7 (Jiji Press)--Nippon Steel Corp. <5401> plans to idle one of the two blast furnaces at its Wakayama Works in western Japan, it was learned on Friday.

The major Japanese steelmaker plans to boost efforts to reduce its domestic production capacity in line with a fall in steel demand amid decelerating growth of the world economy, informed sources said.

The Wakayama blast furnace to be halted has been in operation since 2009.

Considering the supply-demand balance, the company plans to use the other Wakayama blast furnace, introduced in 2019, to streamline production at the steelworks, located in Wakayama, according to the sources.

Nippon Steel suspended one of the three blast furnaces at its Kimitsu Works in Chiba Prefecture, eastern Japan, in March 2016, before the company changed its name from Nippon Steel & Sumitomo Metal Corp.

[Copyright The Jiji Press, Ltd.]

Jiji Press