TOKYO, May 25 (Reuters) - Kobe Steel Ltd is considering shutting a blast furnace in Kobe, western Japan, to cut production capacity by 20 percent, the Nikkei business daily reported on Saturday, as it tries to turn around its loss-making iron and steel business.
Its iron and steel operations posted an ordinary loss of 50.2 billion yen ($496.1 million) in the year ended March after sluggish demand from shipbuilders and fierce competition from Asian rivals, such as South Korea’s Posco and China’s Baoshan Iron & Steel.
“Nothing has been decided at this stage,” said Kobe Steel spokesman Hiroyuki Yabuki.
Rival Nippon Steel & Sumitomo Metal Corp said in March it planned to mothball one of three blast furnaces at its Kimitsu steel mill around March 2016 and to delay the start of a new blast furnace at its Wakayama plant.
$1 = 101.1850 Japanese yen Reporting by Yoko Kubota; Editing by Paul Tait