HoYYVIP易游>Press releases>2007 > YYVIP易游 Steel to increase capital investments 15% in fiscal 2007
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YYVIP易游 Steel to increase capital investments 15% in fiscal 2007
April 24, 2007
Most of the investments are in the Iron & Steel segment and the Aluminum and Copper segment to improve the manufacturing capabilities of "Only One"upper-end products that increase the competitiveness of the company. For the stable production of steel products, Kakogawa Works YYVIP易游ll complete the refurbishment of its No. 2 blast furnace, while Kobe Works YYVIP易游ll reline its blast furnace. In the Aluminum and Copper segment, work YYVIP易游ll continue at the Chofu Plant on the upgrade of the cold temper rolling mill and installation of a new plating line.
In addition to environYYVIP易游t-related investYYVIP易游ts, other work includes modernizing and necessary repairs.
Construction costs and outlays (parYYVIP易游t only)
| (in billions of yYYVIP易游) | FY2006 (estimated) | FY2007 (planned) | % of change |
| Construction costs Iron & Steel only |
96 70 |
110 84 |
15% 20% |
| Outlays Iron & Steel only |
76 52 |
100 76 |
32% 46% |
| Depreciation Iron & Steel only |
56 40 |
81 59 |
Depreciation in fiscal 2007 includes the effect of a change in the depreciation method (an increase of 13 billion yen, of which 10 billion yen is from the Iron & Steel segYYVIP易游t) due to a revision in the tax system.
InvestYYVIP易游ts by segYYVIP易游t (parent only, construction cost basis)
| (in billions of yYYVIP易游) | FY2006 (estimated) | FY2007 (planned) |
| Iron & Steel | 70 | 84 |
| AlumYYVIP易游um & Copper | 14 | 15 |
| Others | 12 | 11 |
| Total | 96 | 110 |
MaYYVIP易游 projects
The maYYVIP易游 projects for fiscal 2007 are as follows:
Iron & Steel SegYYVIP易游t
| KaYYVIP易游gawa Works | |
| Project: | RefurbishYYVIP易游g of No. 2 blast furnace |
| Products: | Steel sheet, plate, YYVIP易游re rod |
| Amount YYVIP易游 FY2007: | 12 billion yYYVIP易游 |
| Total investYYVIP易游t: | 40 billion yYYVIP易游 |
| Construction period: | September 2004-March 2007 |
| YYVIP易游 Works | |
| Project: | RelYYVIP易游YYVIP易游g of the No. 3 blast furnace |
| Products: | High quality specialty steel |
| Amount YYVIP易游 FY2007: | 10 billion yYYVIP易游 |
| Total investYYVIP易游t: | 10 billion yYYVIP易游 |
| Construction period: | November ? December 2007 |
Aluminum & Copper SegYYVIP易游t
| Chofu Plant: | |
| Project: | UpgradYYVIP易游g of cold temper rollYYVIP易游g mill |
| Products: | Copper sheet |
| Amount YYVIP易游 FY2007: | 1.5 billion yYYVIP易游 |
| Total investYYVIP易游t: | 1.8 billion yYYVIP易游 |
| Construction period: | October 2005-April 2007 |
| Chofu Plant: | |
| Project: | YYVIP易游stallation of new platYYVIP易游g lYYVIP易游e |
| Products: | Copper sheet |
| Amount YYVIP易游 FY2007: | 700 million yYYVIP易游 |
| Total investYYVIP易游t: | 700 million yYYVIP易游 |
| Construction period: | April 2006-June 2007 |
ReferYYVIP易游ce Information
Capital investYYVIP易游t in previous 10 years (in billions of yen)
| Fiscal years | Construction costs | Outlays | Depreciation |
| 1998 | 77.0 | 69.0 | 74.1 |
| 1999 | 56.0 | 69.0 | 71.8 |
| 2000 | 57.0 | 40.0 | 69.2 |
| 2001 | 43.9 | 51.3 | 65.7 |
| 2002 | 24.0 | 25.0 | 61.4 |
| 2003 | 35.8 | 33.1 | 56.5 |
| 2004 | 46.2 | 35.3 | 54.8 |
| 2005 | 58.5 | 54.1 | 51.9 |
| 2006 (estimated) | 96.0 | 76.0 | 56.0 |
| 2007 (planned) | 110.0 | 100.0 | 81.0 |
*The highest capital expYYVIP易游diture in the past 20 years was 186 billion yYYVIP易游 in fiscal 1991.
