NKK to Increase Capital Spending by
7% in Fiscal 2003
NKK plans to spend ¥45 billion on plants and equipment
in fiscal 2003, which began April 1. The figure marks a 7.1% increase
from the previous year, but is still a modest amount compared to the
high spending levels reached in the early 1990s. Capital spending has
been scaled down by most Japanese steelmakers as part of their restructuring
efforts to cut fixed costs and improve financial performance amid sluggish
steel demand.
Of the total ¥45 billion (on a construction cost
basis), ¥37 billion will be spent on the mainline steelmaking sector,
with the remaining ¥8 billion earmarked for engineering and other
areas.
Major Steel Division projects include construction of
a power generation plant with land boilers at the Fukuyama Works. The
¥5 billion project, due to be completed in the first half of 2003,
is designed to utilize by-product gas generated at the works for home
power generation. Other outlays will be allocated to renovating aging
facilities and spent on rationalizing measures.
NKK plans to fund the entire ¥52 billion required
for payment during the current fiscal year from the company's ¥55
billion depreciation charge.
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