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Introduction of Group Companies
From Value One Autumn 2005 No.10
Kyushu Steel Corporation, an exceptional electric mill that has maintained profitability over many years in an industry subject to periodic upturns and downturns, produces steel bar for reinforcement rods. Together with its subsidiary, Tokai Steel Corporation, it has attained around 50% of the round bar market in the Kyushu region.
A Successful Company in the Black since its Establishment

Kyushu Steel's predecessor was Daian Steel, a round bar rolling mill established in 1973 that merged with the steel manufacturing division of Kiyomoto Co., Ltd., in 1987 as part of a program to restructure the Kyushu region's electric furnace industry. Renamed Kyushu Steel, the company was launched as a consolidated electric steel manufacturing and rolling mill. It produces steel bar used in reinforced concrete, the main category of electric steel products generally known as "round bars." The electric furnace industry consists of environmentally friendly recycling setups that melt down steel scrap collected in the open market in electric furnaces, transforming it into steel products. Kyushu Steel manufactures steel slabs known as billets from steel scrap at its Saga Works and then ships it to the main plant, which has a rolling mill, for rolling and processing into round bars. With steel scrap procured by an affiliated Nagasaki Scrap Center and other companies from within the Kyushu area, and the round bar products all sold in Kyushu, the company has established a sales system closely tied to the region.

Current production volume is around 15,000 tonnes monthly. Along with its subsidiary, Tokai Steel Corporation, whose plant is located in Kitakyushu 's Wakamatsu Ward, monthly production volume reaches 35,000 tonnes and the two companies account for approximately 50% of the business in the Kyushu region.

The company is an exceptional firm that has maintained profitability in the highly competitive round bar industry throughout the 18 years since its establishment. The key has been thorough rationalization strategies. In 1994, the company switched to nighttime operations, when electricity costs are lower, not only for steelmaking processes, but for rolling processes as well, and this was exceptionally progressive for an electric steel mill at the time.

Minori Nakamura became president this year in March after studying the round bar industry for an entire year while assisting Former President Akihiko Kamisaka (currently president of Tokai Steel Corporation) as Vice President. He acquired a direct personal understanding of the hardships of the steel manufacturing field.

"The least I can do to reward the employees for their trouble is to maintain profitability," President Nakamura says. He is aiming to strengthen competitiveness by aggressively promoting the replacement of aging facilities and through additional cost-cutting measures.

In the future, he plans to strengthen ties with Tokai Steel Corporation and focus on production to meet demand in the Kyushu region while maintaining a sales setup covering all areas.

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