Japanese steelmaker Nippon Steel has begun transitioning from blast furnace production to electric arc furnace (EAF) production at its Kyushu Works facility, marking a significant step in its decarbonization strategy. This was reported by Japan Metal Daily.
The new EAF will have a capacity of approximately 2 million tons per year and is expected to begin production in the first half of the 2028/2029 fiscal year. The company is positioning this project as the world’s first integrated system for the mass production of high-quality steel using a large-scale electric arc furnace. It also includes secondary refining and continuous casting facilities.
The total investment amounts to 630.2 billion yen ($3.97 billion), with the upper limit of government support set at 179.9 billion yen.
The company also plans to install two more electric arc furnaces—at the Setouchi Works (with an annual capacity of 500,000 tons) and the Yamaguchi Works (400,000 tons per year).
As a reminder, at the end of 2025, Nippon Steel announced that as part of its new medium-term business plan, it plans to invest 6 trillion yen (approximately $39 billion) over the next five years. The goal is to increase profits both domestically and abroad. The announced amount includes planned investments of nearly $11 billion in US Steel by the end of 2028.
The Japanese steelmaker also expects to increase its global steel production capacity to 100 million tons per year or more by 2030. Regarding the outlook for steel demand, Nippon Steel anticipated an increase driven by economic growth in India and other developing countries.
