Kyoei Steel Ltd.
(Disclosure Update) Notice regarding partial change in capital expenditure plan at US base
Increased the capital expenditure plan for the US subsidiary Vinton Steel by USD 72 million to a total of USD 327 million. Production capacity will be enhanced for both steelmaking and rolling facilities, with commercial operation of the new line scheduled for October 2027.
Key Figures
- Total Capital Expenditure: USD 327 million (up USD 72 million from previous)
- Steelmaking Facility Production Capacity: 360,000 net tons/year (up 30,000 net tons from previous)
- Rolling Facility Production Capacity: 360,000 net tons/year (up 40,000 net tons from previous)
AI要約
Details of Change in Capital Expenditure Plan
Kyoei Steel Ltd. has reviewed part of the plan for a new steelmaking plant and a major refurbishment of the rolling mill facilities at its consolidated subsidiary, Vinton Steel LLC in Texas, USA. Additional equipment and specification revisions have been implemented to enhance production capacity. Accordingly, total capital expenditure increased by USD 72 million, reaching USD 327 million. Funding will be procured through a combination of internal funds, bank borrowings, and industrial revenue bonds issued by the Texas state government.
Future Schedule and Impact on Business Performance
Construction will commence in April 2026. The new steelmaking plant is scheduled to begin operation in March 2027, with commercial production starting in October 2027. This capital investment is carried out within the scope of the North American strategic investment totaling 60 billion yen under the medium-term management plan 'NeXuS II 2026.' There is no impact on the consolidated financial results for the current fiscal year, and any necessary revisions to earnings guidance will be promptly disclosed.
