Steel Success Strategies XXI

1

• Steel Success Strategies XXI
• (2006)
• Panel I
• Presentation by
• Masato Mori
• President CEO
• Nippon Steel U.S.A., Inc.

2
Chart 1
Changes in World Crude Steel Production
Source Iron Steel Statistical Directory by
Japan Iron Steel Federation
3
Chart 2
Crude Steel Production of Major Countries
Source Iron Steel Statistical Directory by
Japan Iron Steel Federation
4
GDP Growth and Steel Consumption
Chart 3
Correlation between GDP per capita and apparent
consumption of crude steel (2002)
World top 10 countries in population
(hundred million people)
ltConsumption per persongt
kg, annual
Taiwan
Korea
Japan
Germany
USA
China
France
India
US, annual
( Source United Nations)
ltGDP per capitagt
5
International Comparison of Energy Efficiency in
Integrated Steel Mills (2003)
Chart 4
Source JISF (2003) Note Estimate based on IISI
data and bilateral communications between JISF
and its counterparts, such as Korea
Iron and Steel Association, China Iron
and Steel Association etc.
6
Reduction in Energy Unit Consumption of
Japanese Steel Industry (Base Year FY 1990)
Chart 5
7.3 Reduction
Notes Unit consumption of energy energy
consumption/crude steel production
The figures are corrected by production
conditions in FY 1990.
7
Reduction of SOx, NOx and Dioxin Emissions (Case
of A Japanese Steel Company)
Chart 6
(Unit106Nm3)
(Unit106Nm3)
? Dioxin Emissions 95 Reduction / FY 1997
8135g-TEQ ? FY 2003 404g-TEQ
8
Japanese Steel Industry Investments in Energy
Saving and Environmental Preservation
Chart 7
\ 3 trillion (FY 1971 FY 1989)
\ 1.5 trillion (FY 1990 FY 2004)
20 Energy Saving Achieved
10 Energy Saving Targeted
(\100 million)
2010
Energy Environ.
Environ/Energy Cumulative
Total Investments (Right Scale-?100 million)
Sources Through FY 2001- Capital Spending Plans
of Major Industries FY 2002 and later
years-Capital Spending Survey in Japan Note
Due to a change in the sources, the definitions
of survey items changed in FY 2002 and subsequent
years, making them incompatible with
previous years.
9
Japan China Exchange Conference (July 2005)
Chart 8
The Japan China Steel Industries Conference on
Exchange of Advanced Technologies on
Environmental Preservation and Energy Saving.
(Co-sponsored by the Japan Iron and Steel
Federation and the China Iron and Steel
Association)
Memorandum (Main Points Agreed Upon)
Recognize the importance of continuing to
promote exchanges concerning environmental
preservation and energy saving from the
standpoint of more effective use of resources
and the preservation of the global environment.
Carry out exchanges of information and experts
on environmental preservation and energy
saving on a continual basis.
10
Energy Savings Achieved in Asia through
Technology Transfer from Japanese Steel Industry
(Converted to CO2 Reduction)
Chart 9
NEDO Energy-saving model projects (13 cases)
implemented through 2003 have resulted in
reduction of approximately 500,000 tons-CO2 per
year. Other projects by Japanese steel industry
(7 cases) produced reduction of
approximately 900,000 tons-CO2 per year.
NEDO Projects (13)
58
Other Projects (7)
29
31
Korea
China
2
India
Thailand
7
Malaysia
10
(Unit10,000 ton-CO2)
11
Nippon Steels Product Development for
Automotive
Chart 10
Body, Suspension and Wheel
Sn-Zn Coated Sheet for Fuel Tank Zn-Ni Coated
Sheet for Fuel Tank
Body
440 HSS for Exposed Panel
Bakehardenable SteelBH Steel for Export
Phase Controlled GA
L-Treatment GA
TRIP HSS
1470 HSS Pipe
DP HSS
HSS for Induction Hardening
980, 1180 Ultra-HSS
Aluminized Sheet for Hot Stamping
Power Train
780 High Stretch Flangability HSS
Electrical Sheet for Hybrid Vehicle
Suspension
780 HSS for Wheel Rim
NSC commercialized the products in hatch ahead of
competitors and is maintaining top share in
Japan.
DP HSS for Wheel Disc
Wheel
12
Top Market Share for High Value-Added Products in
Japan
Chart 11
Differentiates from competitors by providing wide
range of high value-added products
All products
Galvanized steel sheets for automobiles
Specialized thin steel sheets (High tensile
strength steel)
???
?????
Nippon Steel approx. 25
Nippon Steel approx. 40
Nippon Steel approx. 50
Heavy plates For shipbuilding
Tin TFS
Electrical steel
Rails
????
??
Nippon Steel approx. 35
Nippon Steel approx. 40
Nippon Steel approx. 50
Nippon Steel approx. 65
Note Market share based on non-consolidated
account
(Source Order Inflow Statistics, 2004)
13
Asian Market Growth Potential in High Value-Added
Products
Chart 12
Growth of Auto Production in Asia (03?08)
Increased production by Asian users of high
value-added steel (exc. Japan) ( FY 02?FY 05)
(10,000 Units)
Containers 9
Refrigerators
27?34million units 26
(35)
(39)
(4)
Home appliances 21
Cargo Containers /rails 9
Washing machine
24?35million units 46
Precision equipment 11
Air conditioners
Automotive 19
Growth of Shipbuilding in Asia
34?40million units 18
Automobile
Shipbuilding 18
Energy 13
(10,000 Units)
8?12million units 50
5,000
Other
Shipbuilding
(Estimate, 2003)
17?23million GT 35
China
4,000
Production share in East Asia (, 2003)
3,000
Other
Asia
2,000
East Asia
Korea
1,000
Japan
0
(Index Worldwide100)
'70
'75
'80
'85
'90
'95
'00
'05
'10
14
Chart 13
World Crude Steel Production (2005)
Production by country
Production by company
(million metric tons)
Crude Steel Output Ranking (million metric tons)
Worldwide total 1,132 (2005)
Others 96
2005 Asia 567 (51)
Russia,CIS 111
China 349 (31)
China 349 (31)
America 172
Japan 112 (10)
Japan 112 (10)
2004 Asia 485 (47)
Europe(EU25)186
Asia-Others 56
Korea 50
Korea 50
Total 1, 131.8
(Source International Iron and Steel Institute)
Converted to annual base number, including ISG,
Krivorizhstal and Valin.
15
Overseas Strategic Business Alliance Network and
Key JVs
Chart 14
Manufacture JV of Cold-rolled sheets in north
America
Strategic Alliance Extended for Another 5 Years
(2006-2010)
Joint Research
(technology for steel steel making process)
Joint Research (steel sheets for
automobiles)
JV Partner
40
Arcelor
POSCO
Mittal Steel U.S.A.
50
3
Manufacture and sales JV of Coated sheets for
Auto in North America
Nippon Steel
38
Manufacture and sales JV of cold-rolled and
hot-dip galvanized steel sheets in China
JV Partner
36
61
21
Manufacture JV of Hot-dip galvanized sheets for
Auto in South America
Manufacture and sales JV of Pipe for machinery in
Thailand
Manufacture and sales JV of Cold rolled sheets in
Thailand
Jan.07, start up subsidiary to increase
production capacity in Indonesia
Strategic alliance
JV with Nippon Steel
( of capital investment)
Capturing growth opportunities as well as
delivering technology innovations
(Unit thousand tons)