Japanese metallurgists accelerate refurbishment and modernization of factories

Japanese news channels have reported that the country's major steelmakers are speeding up repairs and refurbishment of aging facilities after a series of setbacks. Seven serious accidents occurred this year, resulting in a temporary suspension of production.

Notably, five such accidents occurred at Nippon Steel & Sumitomo Metal Corporation's facilities, including an explosion at a steel mill in Nagoya in September that injured 15 people. The reasons behind these problems range from human factors to worn out equipment, which experts believe plays a key role. Nippon Steel's Nagoya plant was built in 1958 and is Japan's fourth largest producer of steel sheets used in the automotive and engineering industries.

Katsuhiko Ota, executive vice president of Nippon Steel, the world's second largest steel producer, said coke ovens at some sites are deteriorating at a faster rate than previously expected. The firm is poised to step up renovations at its Kimitsi and Kashima factories. The increase in renovation costs prompted the company to revise its original plan to cut costs for the current fiscal year from March 2015.

JFE Holdings Inc's executive vice president, Shinichi Okada, also says the company is facing significant challenges from the aging of some of its coke ovens. Beginning in fiscal 2014, the company has increased the cost of service extensions for a number of facilities to JPY 10 billion.