CORRECTED - CORRECTED-UPDATE 1-JFE faces write down on garbage business - pa

(Corrects headline to ... faces write down on garbage business ..., not ... to post loss due to ... In paragraph one to ... write down ..., not ... loss ... .)

TOKYO, Feb 4 (Reuters) - JFE Holdings Inc (5411.T: Quote, Profile, Research, Stock Buzz), the world's third-biggest steelmaker, will likely report a 50 billion yen ($470 million) write down this year due to rising costs in its garbage treatment plant business, the Nikkei newspaper reported on Monday.

The steelmaker plans to book losses on the garbage business in the year ending March 31 that will cover a 17-year period, the paper said.

A JFE Holdings spokesman declined to comment ahead of the company's nine-month results to the end of December, due at 2 p.m. (0500 GMT).

The company said in October it aimed for pretax recurring profit of 540 billion yen and net profit of 320 billion yen for the year to March 2008.

The loss is related to contracts a subsidiary, JFE Engineering Co, signed with local governments on operation and maintenance of garbage treatment plants, the paper said.

Last year, rivals IHI Corp (7013.T: Quote, Profile, Research, Stock Buzz) and Ebara Corp (6361.T: Quote, Profile, Research, Stock Buzz) also chalked up huge losses from plant engineering operations amid intensifying competition. ($1=106.51 Yen) (Reporting by Yuko Inoue, Edwina Gibbs; Editing by Rodney Joyce)