The Japanese steel major JFE Holdings, Inc. was formed in 2002 and is headquartered in Tokyo city, Japan.
Image: company website
The company was formed by merging the companies NKK and Kawasaki Steel Corporation, and before the merger, NKK Corporation and Kawasaki Steel were the second and third largest steelmakers in Japan respectively. Currently JFE Steel Corporation is part of the JFE Holdings group.
JFE's primary business is its steel production along with its involvement in other businesses like engineering, metal products in ship building and real estate development etc.
JFE Steel Corporation production centers are mainly concentrated in three regions: two of them being the large coastal steelworks in eastern and western Japan, and the third one is Chita Works, which specializes in producing steel pipes and steel tubes. All of these centers use advanced technologies to produce efficient and high-quality steel products. The company also has technical research centers at all the regions for the development and application of advanced technologies in making steel in the world.
The JFE Group has made consistent efforts to increase its profits. Efforts in Japan included improving its manufacturing base and using its cutting edge technology to develop new products and minimize costs. Overseas, the JFE Group made greater efforts to expand its businesses based on its long-term strategy. Despite these efforts, the persistent oversupply of steel resulted in the deterioration of global steel industry conditions, resulting in decreases both in operating income and in net profits compared to previous year. As a result, if we look on a consolidated basis, net sales has come down to 3432 billion yen. Operating profits have fallen to 90 billion yen and normal profits have fallen to 64 billion yen. An economic profit of 10 billion yen was recorded for FY16. Profit before taxes came to nearly 75 billion yen and profit attributable to shareholders and owners of the parent company was nearly 34 billion yen.
By segment, the production of crude steel in the steel business had decreased to nearly 30 million tons in the face of domestic inventory adjustment. The lower prices in the industry and excessive supply from china led to the drop in Net sales to 2445 billion yen. Although the business made greater efforts to improve profitability, Net income decreased to nearly 28 billion yen due to a decrease in sales volume and unfavorable export conditions.