JFE Steel plans to double the electrical steel sheet production capacity at its West Japan Works in the Kurashiki district through a new expansion project that is likely to cost the company close to JPY49bn ($442.6mn).
The project is slated for completion over the next three years and production is projected to begin in the first half of FY2024, the steelmaker said in a statement on Apr 1.
Growing demand for high-grade non-grain-oriented and grain-oriented electrical steel sheet products prompted JFE to embark on this project. These products are mainly used in electric vehicles.
JFE is expecting the global demand for EVs to grow quickly, it stated. The Japanese steel company’s total crude steel production in FY2019 tallied at 27.88mn mt.