Nippon Steel continues to close blast furnaces

Japanese steel giant Nippon Steel Corporation (NSC) has announced plans to close more blast furnaces in line with its strategic plan to reduce operating costs. Therefore, possible job cuts are expected due to the closure of the furnace. The company expressed concerns that its annual profit could be affected by a huge drop in demand and steel prices.

The company has already decided to close two of the fifteen blast furnaces in Japan by March 2024. Further closure could lead to a significant reduction in the company's steelmaking capacity in the Asian region.

Commenting on the future outlook, Nippon Steel's executive vice president Katsuhiro Miyamoto said the company plans to consolidate all of its capacity, including blast furnaces, to reduce fixed costs. The moves are an attempt to ward off a sharp decline in domestic steel demand and export restrictions due to the ongoing trade conflict between countries around the world, he said.

Earlier in November, NSC cut its profit forecast for the current year, mainly due to tight export margins due to falling steel production coupled with production disruptions at its facilities as a result of a severe typhoon and fire. In addition, it plans to restructure its internal operations by merging its 16 internal business units into six metallurgical units.