Sustainable procurement efforts

Nippon Steel steadily and continuously procure raw materials, other materials, and equipment to achieve a stable supply of steel products for a sustainable society.

In terms of procurement of raw materials and fuels, we are sourcing from suppliers worldwide, including Australia, North America, South America, South Africa, and China, for a stable supply of more than 100 million tons of raw materials for the steelworks. The supply of materials is mainly iron ore and coal. In the procurement of equipment and materials, we purchase around one million product items of equipment and materials — from gigantic facilities such as blast furnaces to electric and mechanical products as well as safety, emergency, and office supplies — from about 3,000 suppliers.

In engaging in these procurement activities, we are committed to compliance with laws and regulations, consideration of environmental conservation, elimination of racial discrimination and human rights abuses, confidentiality and thorough information management as prerequisites. We then strive to maintain and improve mutual understanding and trust with suppliers from a long-term perspective. In July 2020, upon affirming agreement with efforts made by the Ministry of Economy, Trade and Industry, we made a declaration for the establishment of partnership relations with suppliers and other business partners to establish cooperative and co-existing relationships.

In connection with procurement of materials and equipment from numerous suppliers, we hold a Material/Equipment Procurement Partners Meeting to be held once every three years with an objective to share our purchasing policy in order to deepen dialogue and share procurement policies based on management strategies. In the Meeting, we asked them to cooperate in strengthening partnerships to improve manufacturing competitiveness and in promoting procurement activities to achieve the goals of the SDGs.

Basic policy on equipment and materials procurement

  • Compliance with laws
  • Equal opportunities
  • Building of a partnership
  • Fair disclosure of information and quick transaction processing
  • Consideration to resource protection and environmental preservation
  • Preservation of confidentiality

Partnerships with Suppliers*Number in parenthesis: implementation year

  • Machinery & Materials Procurement Div. Partnership Award Program (2015-21)(2015-21)
  • Partnership with Rio Tinto(2021)(318KB)
  • Support for Declaration of Partnership Building launched by the Cabinet Office, Small and Medium Enterprise Agency, etc.(2020)

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Sustainable Finance