Optimization of the Production System in the Osaka Area and Consolidation of Ironmaking Processes

「The company is implementing profit improvement measures under the Osaka Steel Group Medium-Term Management Plan formulated on 31 January 2025, including demonstrating product competitiveness and delivery capabilities, organically coordinating its 4 domestic sites, and strengthening the integrated steelmaking-to-rolling-to-shipping operating structure through the operation of an energy- and CO2-saving electric arc furnace,」

「For the installation of the energy-saving, low-CO2 electric furnace at the Sakai Plant, we reviewed the construction period in light of adjustments to the construction schedule and other factors and are working toward starting operations within the current fiscal year. We are also carrying out planned replacement investments for aging equipment, including crane replacement at the Kumamoto Plant.」

「In addition to the effects of the rolling-process strengthening measures, or S Project, implemented to date, we will further strengthen the Sakai Works' integrated operations from steelmaking through rolling and shipment by enhancing warehouse capacity to improve delivery capabilities, as planned. We will also implement warehouse-capacity enhancement measures in each region from the perspective of the transport industry's work-style reforms and reducing CO2 emissions during transportation.」

「Regarding capital investment, foundation work has begun on the energy-saving, low-CO2 electric furnace at the Sakai Plant, for which a decision was made last fiscal year and completion is scheduled for fiscal 2025. The product warehouse at the West Japan Kumamoto Plant was completed in July this year, and we are improving truck drivers' working conditions by shortening loading times. Investment plans are progressing as scheduled.」

「During the fiscal year, we also worked to establish our future business base by deciding to install an energy- and CO2-saving electric furnace at the Sakai Works, build a new product warehouse and expand solar power generation facilities at the Kumamoto Works, and transfer the rail-processing equipment at the Onigashima Plant.」

「As we decided to demolish buildings and other structures on the site of the Onigashima Plant at our Osaka Works, we recorded business structure improvement costs of ¥458 million. The main component was ¥458 million in fixed-asset demolition and removal costs.」

「As part of establishing our business base, following the consolidation of plants and fixed-cost optimization under the Osaka Works rolling-line strengthening measures completed last fiscal year, we decided in August this year to install an energy- and CO2-saving electric furnace at our Sakai Works in Osaka. We also decided to build a new product warehouse at our Kumamoto Works in western Japan to address the logistics issues expected in 2024.」

「First, under the Osaka Works Rolling Line Strengthening Measures, known as the S Project, which we have pursued since fiscal 2018, the transfer of products manufactured at the Onigashima Rolling Mill to the Sakai Works has been completed, and the Onigashima Rolling Mill was suspended at the end of September this year. We are working diligently to optimize fixed costs across the Osaka Works and improve costs at the Sakai Works through production consolidation.」

「In addition, in July this year, we resolved and announced the suspension of the Osaka Works Onigashima Rolling Mill, based on the Osaka Works Rolling Strengthening Measures (S Project), in light of plans to transfer and consolidate the products manufactured at the Onigashima Rolling Mill at the Sakai Works by the end of September 2022.」

「Construction work to strengthen the rolling line at the Osaka Operations Office was completed in fiscal 2020, and certification and approval for major product types were completed in fiscal 2021. As commercial production began, we worked to improve the direct-delivery rate of hot billets from steelmaking to rolling as a result of production consolidation, and energy-saving effects have also begun to emerge.」

「Regarding the measures to strengthen the rolling line at the Osaka Works, announced in May 2018 to further strengthen the manufacturing structure in the Osaka area, the company has steadily advanced preparations, including completing installation of the 2 new roughing mills, the main equipment.」

「The company newly established the Sales and Logistics Planning Department to strengthen the Group-wide ability to plan and advance sales and logistics initiatives in order to respond quickly and accurately to changes in demand trends, customer needs and the logistics environment. It also pursued “selection and concentration” in its production structure and decided to end production of processed elevator guide rails at the end of March 2020.」

「In addition, the Group worked to strengthen the earnings base of PT. KRAKATAU OSAKA STEEL, the core of its growth strategy, and is steadily implementing measures to strengthen the rolling line at its Osaka Works toward operation in fiscal 2021.」

「In addition, the Group worked to strengthen the earnings base of PT. KRAKATAU OSAKA STEEL, the core of its growth strategy, and is steadily implementing measures to strengthen the rolling line at its Osaka Works toward operation in fiscal 2021.」

「In addition, the company continues to advance its growth strategy centered on PT. KRAKATAU OSAKA STEEL (KOS) and measures to strengthen the rolling line at its Osaka Works.」

「In addition, the company began implementing and worked diligently to advance the measures to strengthen the rolling line at its Osaka Works, announced in May last year with the aim of further strengthening its manufacturing structure in the Osaka area.」

「In addition, the Group formulated the “FY2020 Consolidated Medium-Term Plan: A New Leap Forward” and worked diligently to advance its growth strategy centered on PT. KRAKATAU OSAKA STEEL, while further strengthening the efficient production and logistics structure of its domestic operations.」

「In addition, the Group formulated the “FY2020 Consolidated Medium-Term Plan: A New Leap Forward” and worked diligently to advance its growth strategy centered on PT. KRAKATAU OSAKA STEEL (KOS), while further strengthening the efficient production and logistics structure of its domestic operations.」

「In addition, the company worked to advance its growth strategy centered on PT. KRAKATAU OSAKA STEEL (KOS) and further strengthen the efficient production and logistics structure of the Group’s domestic operations.」

「In addition to these initiatives, the company worked to strengthen an optimal production and logistics structure by leveraging the locations and respective equipment advantages of the Group’s manufacturing sites in the Kanto, Kansai and Kyushu regions, including consolidated subsidiary 東京鋼鐵株式会社 (hereinafter, 東京鋼鐵), and transferring production of certain products between sites.」

「In particular, we are promoting measures to concentrate iron sources at Sakai Steelmaking and improve energy-saving technologies and operations toward achieving the 20% energy-saving target.」

「In particular, we are promoting measures to concentrate iron sources at Sakai Steelmaking and improve energy-saving technologies and operations toward achieving the 20% energy-saving target.」

「To strengthen its domestic business base for the future by optimizing its production structure, the company suspended the steelmaking process at the Osaka Onkajima Plant at the end of March 2016 and transferred the ironmaking process to the Sakai Plant.」