TOKYO JFE Steel Corp. is
looking to slash its costs by 100 billion yen ($1 billion)
in the current fiscal year starting April 1, with a big focus
on reducing its raw material expenses.
"About 70 percent of our planned
savings for this year will come from reducing costs in our
upstream operations, and will include a combination of
modernizing old equipment for higher productivity and by using
lower-grade coal and iron ore," a company executive told
AMM sister publication Steel First.
The company has earmarked some
200 billion yen ($2 billion) in capital spending for
fiscal 2013, much of it for upgrading its facilities and
installing new equipment for pulverizing, transporting and
injecting low-grade coal at its eight Japanese blast
It also plans to use more low-iron-content iron ore to help
boost profitability after its pre-tax profit for fiscal 2012
fell 40 percent to 15.3 billion yen ($156
A version of this article was
first published by AMM sister publication Steel First.