Nippon Steel plans to cut 20% of domestic production capacity

According to reports, Nippon Steel planned to suspend one blast furnace at its plant in Ibaraki Prefecture. It will be the latest condition that it tried to deal with overcapacity in Japan. The company also announced earlier to halt the other 3 blast furnaces. It will totally cut its domestic capacity by 20%. Although the demand for automaking is rising, Nippon Steel still faces the issue of overcapacity. It tried to reduce the carbon emissions from the blast furnaces since Prime Minister Yoshihide Suga asked Japan to meet carbon neutrality. Besides, Nippon Steel also tried to cut and consolidate some rolling and processing lines, which will cause around 3,000 employees to be relocated.