Review of Operations

JFE Urban Development Corporation

Environmentally friendly urban development to create comfortable living and working spaces will form the true foundation of excellent 21st-century cities.

JFE Urban Development, created through the integration of the urban development divisions of Kawasaki Steel and NKK, is active in three areas: development of large-scale complexes, which entails redevelopment of extensive tracts of land owned by the JFE Group into new cityscapes; provision of condominiums, which spotlights construction and sales of high-quality units in the Tokyo metropolitan area; and asset utilization, which covers maintenance and operation of land and building assets.

Through the development and operation of facilities that make daily life a comfortable experience, we will enable the people of the 21st century to live life to the fullest.

JFE Urban Development Group's First Medium-Term Business Plan
The JFE Urban Development Group will work to promote development of large tracts of idle land held by the JFE Group, while reinforcing its own condominium business, especially in the Tokyo metropolitan area. These efforts should lead to ordinary income of ¥4.0 billion in the year ending March 31, 2006.

Developing Large Tracts of Idle Land
The JFE Urban Development Group will contribute significantly to profits by redeveloping idle land held by the JFE Group. We have already embarked on the Yokoyama Yamanouchi Development Project, a coastal city complex that will see about 1,000 residences, commercial venues and office buildings built over about seven hectares of idle land where NKK's Asano dockyard once stood. We are also promoting the creation of a research park called Techno Hub Innovation-nicknamed "THINK"-in the North Watarida district of Kawasaki. THINK will revamp the existing cluster of research facilities into a better type of complex.

Strengthening the Condominium Business
When the three million or so children of the baby boomer generation who live in the Tokyo metropolitan area move out on their own, demand for condominiums is expected to jump, topping 60,000 units a year. Seeking to capitalize on anticipated demand, we are promoting "Grand Scena," a series of high-quality, highly unique condominium blocks, with a focus on potential owners in Tokyo and neighboring Kanagawa Prefecture. Grand Scena should help boost condominium sales to 700 units in the year ending March 31, 2006, up 170 units from the period under review.