Stainless Steel World Americas August 2024 | Page 2

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Nippon Yakin Kogyo : Exciting Developments for the Future

Founded in 1925 , Nippon Yakin Kogyo ( Nippon Yakin ) is a Japanese manufacturer of stainless steel specialties with a long history . Currently , the company manufactures and supplies strips and plates for a wide range of materials , from general-purpose stainless steels ( such as type 304 and type 316L ) to high-performance materials ( such as super stainless steels and Ni alloys ). In particular , the company sells more than 10,000 tons of Ni alloy flat products annually , and in recent years has maintained a position among the top three in the world .
By Charlie Evans and Kiyo Ichikawa
Recent Developments at Nippon Yakin Appointment of New President Shigemi Urata
At the general shareholders ' meeting on June 26 , it was decided that Shigemi Urata ( former director ) will be appointed as the new President . The change in President comes as a result of the completion of various measures , including large-scale investments during the five years that former president Kubota , who became the new Chairman , was in office . From now on , the medium-term management plan 2023 and other measures will be implemented under the new president Urata .
About the Medium-Term Management Plan 2023
Considering various changes in the unpredictable business environment , Nippon Yakin has compiled and launched the " Medium-Term Management Plan 2023 ," a set of measures to be undertaken and implemented over the three years from fiscal 2023 , in order to achieve resilient and sustainable growth beyond its 100 th anniversary in 2025 and into the future .
The goal of the " Medium-Term Management Plan 2023 " is to " pursue ' diversification of products and raw materials ' and contribute to the future of the earth as a top supplier in the nickel alloy and stainless steel market ," and has set the following three basic strategies :
New President Shigemi Urata ,
1 . Develop and provide industrial materials that pursue increasingly sophisticated market needs and create new value
2 . Establish a production system that enhances technological superiority and responds to changes in the market environment
3 . Establish a sustainable management base that will not waver even in environmental changes
Major measures include :
• Expanding sales of high-performance materials in growth areas and target markets
• Expanding product items by deepening and expanding alliances , mainly with a joint venture in China
• Developing and establishing manufacturing technologies that will enable stable increased production of a variety of high-performance materials
• Securing superiority in future manufacturing technologies that contribute to carbon neutrality ( carbonless nickel smelting , and more .)
• Planning and executing human capital , research and development , and capital investment plans from a medium- to long-term perspective , and so on .
Status in FY2023
In the stainless steel industry , demand increased due to the recovery of production of transportation equipment such as automobiles , but overall remained sluggish due to inventory adjustments for semiconductor manufacturing equipment and delays in the start of construction projects .
As for high-performance materials , the environment and energy fields , including flue gas desulfurization equipment for thermal power plants in India , showed solid trends . Inventory adjustments also progressed in the durable consumer goods sector , including sheathed heater materials and bimetal materials for home appliances . However in the second half of the year , project postponements were repeated due to a downward trend in the LME nickel market and the stagnation of the Chinese economy , resulting in sluggish demand overall .
In response to this external environment , Nippon Yakin shifted to a production system in line with demand while steadily implementing the measures outlined in its " Medium-Term Management Plan 2023 ," securing appropriate roll margins and implementing thorough cost reductions . As a result , although sales volume decreased by approximately 23 % compared to the previous fiscal year , the company achieved a profit of 13.6 billion yen ( non-consolidated ).
Sales Expansion of High Performance Materials
Nippon Yakin has a wide range of high-performance materials , including corrosion-resistant materials , heat-resistant materials , and thermal expansion control materials . By developing and capturing demand through solution sales , these high-performance materials are used in various fields , taking advantage of their respective characteristics . Here are some topics regarding sales expansion of high-performance materials .
High Performance Materials in the Hydrogen Energy Field
Hydrogen , which does not emit CO 2 when used , is attracting attention as an energy source that will lead to decarbonization , and efforts to create a hydrogen value chain ( hydrogen production - transportation - storage - use and consumption ) are progressing worldwide . Currently , fossil fuel-based reforming methods are the mainstream method of producing hydrogen . In recent years , technological development and commercial operation of a water electrolysis process that generates hydrogen by electrolysis of water has been considered . As water electrolysis processes , alkaline water electrolysis and proton exchange membrane water electrolysis are being considered , but alkaline water electrolysis , which applies salt electrolysis used in caustic soda production , is being commercialized because it allows stable and large-scale hydrogen production . Pure Ni is used as a component in terms of its alkaline resistance and electrical properties . Nippon Yakin has traditionally supplied many sheets and strips of pure Ni for the electrolysis of salt water in caustic soda production . As its quality has been recognized , its use in alkaline water electrolysis processes is also on the rise .
Hydrogen produced by electrolysis of water using electrical energy that does not generate CO 2
, such as solar power
2 Stainless Steel World Americas - August 2024 | www . ssw-americas . com