CORRECTED - CORRECTED-Nippon Steel: little crude impact at fire-hit plant

Fri Aug 29, 2008 6:09am BST
 
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(Corrects paragraph 1 to ..."expects little impact on crude steel output" from "would lose about 5 percent of annual output". Corrects throughout to show output of pig iron is expected to drop by 200,000 tonnes with little impact on crude output)

TOKYO, Aug 29 (Reuters) - Nippon Steel Corp (5401.T) said it expects little impact on crude steel output at a key factory in southern Japan as it works to get two coke-producing furnaces back up and running following a fire last month.

The world's second-largest steel maker said it planned to get one of the coke plants back on-line in September and the other operating in December, but that it expected pig iron output at the factory to drop by about 200,000 tonnes.

Nippon Steel said it would use up inventories and procure coke from Mitsui Mining Co (3315.T) to limit the impact on its output of crude steel.

The factory, called Yawata works, supplies sheet steel to Toyota Motor Corp (7203.T) and Nissan Motor Co's (7201.T) car factories, and also makes a range of products such as bar steel and steel pipes.

The factory employs 2,950 people and had crude steel output of about 4 million tonnes in 2007, about 10 percent of the company's total output. (Reporting by Ritsuko Shimizu)

 

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