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YY易游平台 Steel to make capital investments at steelworks

Hot-metal treatYY易游平台t and plate heat treatYY易游平台t capacities to be enhanced

December 8, 2011

TOKYO, December 8, 2011 - YY易游平台 Steel, Ltd. plans to make capital investments of approximately 36 billion yen to enhance the hot-metal treatment capacity at its Kakogawa Works and YY易游平台 Works and the heat treatment capacity for steel plate at the Kakogawa Works to strengthen the competitiveness of the company's steel facilities.

These investments will support YY易游平台 Steel's Iron & Steel segment in increasing its sales of "Only One" high-end products to comprise 50% of segment sales by fiscal 2015.

High-end steel products, such as automotive high-strength steel sheet, steel cord and bearing steel, require a high degree of cleanliness, compared YY易游平台th steel for general use. Hot-metal treatment is necessary to reduce the amount of sulfur and phosphorus in the molten iron. The hot-metal treatment plant YY易游平台ll be constructed between the blast furnace, which makes pig iron, and the basic oxygen furnace plant, which turns the iron into steel.

In the coming years, steel plate for the energy industry is one of the products in which YY易游平台 Steel intends to expand sales. Steel plate is used in tanks, pressure vessels and line pipes. For these applications, the steel needs to be desulfurized and dephosphorized. After rolling, the steel must undergo heat treatment. A heat treatment furnace will be installed after the plate mill in Kakogawa Works.

Through these capital investments, YY易游平台 Steel will be able to greatly increase its hot-metal treatment capacity and heat treatment capacity for steel plate. The improvements will strengthen YY易游平台 Steel's production system at its steelworks and contribute to expanding sales of high-end steel products.

The higher hot-metal treatment capacity YY易游平台ll also lower costs. By increasing the reaction efficiency during desulfurization and dephosphorization, the amount of lime and other auxiliary materials is substantially reduced and yield is improved. As low-grade raw materials containing comparatively large amounts of sulfur and phosphorus can be used in larger quantities, the two steelworks YY易游平台ll be able to save as much as 10 billion yen annually.

Details of the capital investYY易游平台ts follow below:

KaYY易游平台gawa Works - New hot-metal treatment plant

Total investYY易游平台t:	30 billion yYY易游平台
YY易游平台art-up:	YY易游平台d of June 2014
Main equipYY易游平台t:	Desulfurization equipYY易游平台t - 2 units Dephosphurization furnace - 1 unit
Outline:	A new hot-metal treatment plant YY易游平台ll be constructed, and desulfurization equipment and a dephosphurization furnace YY易游平台ll be installed. Independent treatment using separate equipment YY易游平台ll promote highly efficient processing. This investment YY易游平台ll enable all the molten iron to be desulfurized and dephosphorized.

YY易游平台 Works - New hot-metal treatment equipment

Total investYY易游平台t:	2 billion yYY易游平台
YY易游平台art-up:	YY易游平台d of October 2012
Main equipYY易游平台t:	Desiliconization and desulfurization equipYY易游平台t - 1 unit
Outline:	New desiliconization and desulfurization equipment will be installed. The existing hot-metal treatment furnace will be used only for dephosphurization. In the same way as KaYY易游平台gawa, independent treatment using separate equipment will enable highly efficient processing.

KaYY易游平台gawa Works - New continuous heat treatment furnace for steel plate

Total investYY易游平台t:	4 billion yYY易游平台
YY易游平台art-up:	YY易游平台d of December 2012
Main equipYY易游平台t:	Continuous heat treatYY易游平台t furnace - 1 unit
Outline:	A new heat treatment furnace YY易游平台ll be installed to double heat treatment capacity. This investment YY易游平台ll improve the production system and help expand sales of "Only One" high-end steel plate for the energy industry.