JFE Steel to Spend 50 B. Yen to Beef Up Steel Mill

Tokyo, Feb. 28 (Jiji Press)–JFE Steel Corp. said Thursday it will spend about 50 billion yen to boost the production capacity of its steel mill in Fukuyama, Hiroshima Prefecture, western Japan.

The buildup plan for the mill of its West Japan Works features the construction of a caster for steel slab, or semifinished steel, and relevant facilities.

The major steelmaker said the new 2.4-million-ton caster, which will start operations in 2010, will increase its annual crude steel production by 1.5 million tons.

The investment is part of JFE Steel’s plan to spend 150 billion yen to expand its annual crude steel production to 33 million tons from 30 million tons, it said.

Its parent, JFE Holdings Inc. , separately said that it will issue 300 billion yen in convertible bonds with share-purchase warrants for allotment to its three major creditor banks.

Of the proceeds, 150 billion yen will be used for JFE Steel’s production boost and 30 billion yen for mining investment abroad and joint production in China, JFE Holdings said. The holding company will earmark 120 billion yen for the purchase of own shares.END

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