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Electrical Steel Sheets—Investments for Capacity and Quality Improvement

Nov. 06, 2020

Nippon Steel Corporation

As a part of actions toward improving manufacturing capacity and quality of electrical steel sheets, NIPPON STEEL CORPORATION (‘NIPPON STEEL’) has decided to newly expand its electrical steel sheet facilities in the Setouchi Works Hirohata, along with the measures previously announced for the Setouchi Works Hirohata and Kyushu Works Yawata. The investment, including those previously announced, will total approximately 104 billion yen. This series of measures to improve capacity and quality will take full effect during the first half of 2023, with manufacturing capacity expected to increase by approximately 40%.

Steady expansion is forecast in worldwide demand for electricity and electric transformers as the world's population and economy grow, particularly in emerging countries. Furthermore, efficiency regulations around the world on electric transformers are tightening to satisfy the need to reduce CO2 emissions. As such, it is believed that the demand for high-grade material with less energy loss for grain-oriented electrical steel sheets, used in the iron cores of electrical transformers, will be higher than ever.

Furthermore, the demand for eco-cars is also expected to rise from now on, owing to progressively strict regulations on automobile CO2 emissions and average fuel consumption. In this environment, demand for highly effective, high-grade materials such as non-oriented electrical steel sheets, used for iron cores in motors, is also expected to rise sharply.

This investment represents a timely response to satisfy the ever-strengthening requirements for achieving a carbon-neutral world.

NIPPON STEEL will pursue world-leading technologies and manufacturing capabilities, and will continue to contribute to the development of society through stable provision of highly effective, high-grade electrical steel sheets that are consistent with the United Nations' "Sustainable Development Goals (SDGs)."

■Summary of Electrical Steel Sheets—Investments for Capacity and Quality Improvement (including previously announced content)

  • Amount invested:  Announced August 1, 2019      Kyushu Works Yawata      46 billion yen
              Announced November 1, 2019    Setouchi Works Hirohata    14 billion yen
              Announced May 8, 2020     Kyushu Works Yawata        10 billion yen
                               Announced November 6, 2020 Setouchi Works Hirohata       35 billion yen
                               Total                                                                       104 billion yen
  •  Target facilities: Pickling, cold rolling, annealing, slitting line, physical distribution facilities, etc.
    at Kyushu Works Yawata/Setouchi Works Hirohata
  •  Set-up period: To take full effect in the first half of 2023
     (manufacturing capacity: +40% more than the current level)
  • CO2 reduction effect: Approximately 3 million tons/year

For inquiries
Public Relations Center  Tel.: +81-3-6867-2135,2146,2977,3419

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