New Year's Message from President and COO “Becoming the best steelmaker with world-leading capabilities”
Tadashi Imai
Representative Director, President and COO
Nippon Steel Corporation
Today’s world is increasingly moving towards bloc economies, driven by the United States' “America First” and tariff policies, China’s excessive production in the manufacturing industry caused by the economic slowdown, and other factors. The global economy has become extremely unpredictable and highly uncertain.
Concerning Japan’s demand for steel, its domestic consumption is approaching a level comparable to that of other mature developed economies, while the structural adjustment of the Chinese steel industry is expected to take a long time. Also taking into account the trend of international trade policies, it is inevitable that Japan’s crude steel production, which currently is in the 80-million-ton range, will be in a declining phase over the long term. We must keep in mind that Nippon Steel is not immune to these global structural adjustments.
Under the newly-formulated 2030 Medium- to Long-term Management Plan, we will promote a large-scale growth strategy with the aim of regaining our position as the world’s best steelmaker, based on the beneficial results of our enhanced business structure provided by the current Management Plan. Continually generating, steadily increasing business profits is indispensable for achieving our goal.
In the domestic steelmaking business, we will make full use of our competitive production structure and aim to become the undisputed leader in Japan. Through thorough-going efforts to strengthen cost competitiveness, advance the sophistication our product mix combined with next-generation technology development, and develop comprehensive solutions and markets, we will strive to maintain and expand high profitability.
In the overseas steelmaking business, we will focus on strengthening our integrated production system in the United States, Europe, India, and Thailand. U. S. Steel, as a major pillar of our growth strategy, will make every effort to improve profitability by promoting much-needed capital investment, and strengthening cost competitiveness through the comprehensive transfer of operational and quality control technology.
The next five years will be an execution phase to regain our position as the world’s best steelmaker. We will seek to significantly increase the competitiveness of the overseas bases we have acquired and to achieve our vision of 100 million tons and one trillion yen.
As for Green Transformation (GX) initiatives, we decided to invest in converting blast furnace processes to electric arc furnace processes last year. As a private company, recovery of investment is indispensable. We therefore will continue to work at market formation and international standardization of GX Steel, by lobbying the national government, industry, and the general public. We will also continually pursue the development of next-generation breakthrough technologies such as hydrogen reduction.
In order to settle various complex and sophisticated issues, such as the advancement of the domestic steelmaking business, the promotion of global growth strategies, and GX, with due attention given to limited human resources, we need to transform our business culture into one that is more efficient. In order to surmount these issues, we will also promote operational reform and streamlining, and strengthen the competitiveness of our human resources.
Concerning safety, the environment, disaster prevention, and quality management, we will make efforts to create a disciplined workplace where everyone from managers to frontline workers, function together as one.
Facing our goal of becoming acknowledged as the best steelmaker with world-leading capabilities, we have completed all the necessary preparations. Starting this new year, we are taking concrete steps to assure achievement of that goal. Together with all of our employees, I am committed to taking on challenges without fear of change.