Japan-based Nippon Steel Corporation is planning to increase its production capacity in overseas markets amid recovering automotive demand and the improving future demand outlook, while reducing its capacity in its local market, according to a report by Reuters.
In 2019, Nippon Steel and ArcelorMittal jointly acquired India-based Essar Steel, which has an annual capacity of 9.6 million mt and they are considering increasing the capacity of the new joint venture. Nippon Steel is also planning to build a new electric arc furnace with an annual capacity of 1.5 million mt at its US joint venture in Calvert, Alabama. Before the pandemic, the company was challenged by falling demand in Japan and was in competition with China, forcing Nippon Steel to shut nearly 10 percent of its production capacity. During the coronavirus outbreak, the company temporarily halted some of its blast furnaces amid reduced demand and posted a net loss for the first quarter.
“Our imminent task is to improve our overseas profits by capitalizing on recovering global demand from automobiles. In the mid-term, we want to expand our production capacity overseas where demand is expected to increase,” Katsuhiro Miyamoto, executive vice president, told Reuters.