According to foreign media reports, Japan-based steelmaker JFE Steel has decided to restructure its steel sheet business as part of its efforts to enhance the resilience and competitiveness of its domestic manufacturing operations in response to structural changes in the Japanese steel market. According to JFE Steel, this restructuring plan is part of its long-term "JFE Vision 2035" strategy and its "Eighth Medium-Term Management Plan," aimed at reorganizing its domestic production structure and business operations.

The company announced that it plans to suspend operations at its pickling line at the East Japan Works (Keihin) by the end of fiscal year 2025-26. Subsequently, pickled steel sheet production will be consolidated at the East Japan Works (Chiba) and the West Japan Works (Kurashiki and Fukuyama). Furthermore, JFE Steel announced that it will suspend production at the No. 4 continuous galvanizing line and other sheet-related facilities at the Keihin site by the end of the first half of fiscal year 2027-28. Continuous galvanizing production will be consolidated at the West Japan Works (Fukuyama), while cold-rolled special steel sheet production will be concentrated at the East Japan Works (Chiba).

According to the company, the Keihin site will be repositioned as a manufacturing hub for East Japan, specializing in plate and steel pipe production. JFE Steel stated that this site will utilize high-quality semi-finished products supplied from other regions to ensure a stable supply to the construction materials, energy, and infrastructure sectors. The company emphasized that this restructuring will strengthen a product-specific production system and improve efficiency nationwide.

JFE Steel stated that the suspension of some facilities is expected to reduce fixed costs and increase annual profits by approximately 10 billion yen. The company added that reallocating management resources to growth areas and high-value-added products is expected to enhance its medium- to long-term profitability.

JFE Steel is Japan's second-largest and a globally leading integrated steelmaker. It was established in 2003 through the merger of Kawasaki Steel and NKK (Nippon Kokan), and is a core subsidiary of JFE Holdings, with headquarters in Tokyo. The company operates major production bases in Japan, including the East Japan Works and West Japan Works. It specializes in high-end steel products such as automotive sheets, energy pipes and tubes, shipbuilding and offshore engineering steel, and electrical steel. With strong technological capabilities, JFE Steel is at the forefront of areas such as low-carbon ironmaking and ultra-high-strength steel. Its business also extends to engineering, trading, shipbuilding, and other sectors, making it one of the core companies in the Japanese steel industry. In 2024, JFE Holdings was ranked 428th on the Fortune Global 500 list, with revenues of $35,803.7 million.