Japan's JFE Steel to spend $340 mln to expand electrical steel sheet capacity

JFE Holdings

22/05/2023 10:02

TOKYO, May 22 (Reuters) - Japan's JFE Steel said on
Monday it will go ahead with a 46 billion yen ($341 million)
plan to triple production capacity of electrical steel sheet at
its Kurashiki plant in western Japan to meet growing demand for
electric vehicles (EVs).
        The move comes after its bigger rival Nippon Steel Corp
 5401.T  said earlier this month it would spend 90 billion yen
to boost its capacity to make high grade non-oriented electrical
steel sheet at two of its domestic steel works.
    JFE, the flagship unit of JFE Holdings Inc  5411.T , had
flagged the potential expansion in electrical steel sheet, a key
material used in primary motors of EVs, in February.
    The latest investment follows its 2021 decision to spend 49
billion yen to double capacity at the plant by September 2024. 
    After the second expansion is completed by March 2027,
output capacity will triple from current levels.
    Japan's second-biggest steelmaker also said it and Indian
partner JSW Steel Ltd  JSTL.NS  have reached a basic agreement
to form a joint venture to produce electrical steel sheets used
in power plant transformers.
    Under the plan, which was also flagged in February, the new
factory will start operating by March 2028. 
    A spokesperson at JFE Steel declined to comment on an
expected investment cost. 
($1 = 135.0500 yen)

 (Reporting by Yuka Obayashi; Editing by Sonali Paul)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265))