JFE to Halt Blast Furnace near Tokyo

Economy

Tokyo, March 27 (Jiji Press)--JFE Holdings Inc. <5411> said Friday that it will halt operations at a blast furnace in Kawasaki, Kanagawa Prefecture, south of Tokyo, in fiscal 2023.

The Japanese steelmaker thinks that demand will remain weak for a protracted period due to slowing global economic growth.

The halt will reduce the crude steel production capacity of the company's JFE Steel Corp. unit by 13 pct.

JFE's move is the latest in a series of streamlining measures in the Japanese steel industry. Last month, rival Nippon Steel Corp. <5401> said it plans to shut down a steel works with two blast furnaces in Kure, Hiroshima Prefecture, western Japan.

JFE said it expects to report a record consolidated net loss of 190 billion yen for the year ending Tuesday due to 220 billion yen in impairment losses related to the halt. It previously projected a net profit of 13 billion yen.

[Copyright The Jiji Press, Ltd.]

Jiji Press