JFE to Partially Idle Steel Plate Plants

Economy

Tokyo, Feb. 13 (Jiji Press)--JFE Holdings Inc. <5411> has announced plans to idle part of its steel plate plants in response to falling demand amid slowing growth of the world economy.

Some of production lines at its East Japan Works' Keihin area facilities in the city of Kawasaki, Kanagawa Prefecture, and at the same works' Chiba area facilities in the city of Chiba will be halted by the end of next month and by the end of March 2023, respectively, the major Japanese steelmaking and engineering group said Wednesday.

JFE expects the move will reduce fixed costs by billions of yen. Some 360 workers at the production lines subject to the halt will be relocated to other positions.

"Both at home and abroad, we are considering a review needed to have a production system that is the most optimal for us, taking into account the current and future business environment," JFE Executive Vice President Masashi Terahata told a press conference, indicating that the company may take additional measures to adjust production.

JFE's announcement came only about a week after rival Nippon Steel Corp. <5401> said it will shut down subsidiary Nippon Steel Nisshin Co.'s Kure Works in Hiroshima Prefecture, western Japan, by the end of September 2023.

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