Key Metals and Minerals Facilities Remain Offline in Northern Japan

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--At least 14 metals and minerals facilities were stopped either as a direct result of March 11's earthquake and tsunami or the subsequent nuclear situation and power crisis. For more details, read the March 15, 2011, article - Metals and Minerals Sites Affected by Earthquake, Tsunami and Power Outages. Of those 14 plants, eight have resumed operations, regardless of damage in some cases.

As of April 8, Tohoku Steel Company Limited (TYO:5484) (Murata, Japan) had brought most of the equipment at its Sendai, Miyagi, steel works back online. The company originally sought to resume normal operations as of April 10. Nippon Steel Corporation (TYO:5401) (NSC) (Tokyo) was able to resume operations at its Kamaishi, Iwate, steel works on April 13, however the facility's private berth suffered significant damage. Currently the facility is unable to receive raw materials from the Kimitsu steel works in Chiba prefecture and NSC is looking in to alternative ports.

Facilities that have yet to resume operations include the following:

• Mitsui Mining and Smelting Company Limited (TYO:5706) (Mitsui) (Tokyo) Hachinohe, Aomori, zinc graphite works
• Pacific Metals Company Limited (TYO:5541) (Tokyo) Hachinohe, Aomori, steel works
• Toho Zinc Company Limited (TYO:5707) (Tokyo) Iwaki, Fukushima, zinc graphite works
• Mitsubishi Materials Corporation (TYO:5711) (Tokyo) Iwaki, Fukushima, steel works
• Nippon Steel and Sumikin Metal Products Company Limited, a joint venture between NSC and Sumitomo Metal Industries Limited (TYO:5405) (Osaka, Japan) Sendai, Miyagi, steel works
• JFE Holdings Incorporated (TYO:5411) (Tokyo) subsidiary JFE Bars and Shapes Sendai, Miyagi, steel works

Currently, NSC and Sumikin have no restart plan for their Sendai steel works since the facility was severely damaged by the tsunami. JFE Bars and Shapes has found its Sendai works to be in a similar situation; the facility is still without power as well. JFE Steel, another subsidiary of JFE Holdings, as well as Daido Steel Company Limited (TYO:5471) (Nagoya, Japan) and Aichi Steel Corporation (TYO:5482) (Tokai, Japan) are helping to pick up the slack in production just as they did following the Kobe Earthquake in 1995.

Mitsubishi Materials originally planned to resume operations at its Iwaki, Fukushima, steel works by mid-April, but has only achieved a partial restart as of now. The company has been hindered by the crisis surrounding Fukushima Daiichi nuclear power station. Mitsui, Pacific Metals, and Toho are expecting to resume production at their affected facilities by the end of June. Shipments from Pacific Metals steel works in Hachinohe are expected to resume by July, and Mitsui is expected to produce nearly 16% less in the way of zinc graphite between April and September.

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