KYOEI STEEL LTD.

Climate Impact & Sustainability Data (2020, 2021)

Total Energy Consumption:238,371 kL (crude oil equivalent)

Kyoei Steel became the first Japanese minimill steel company to succeed in melting and detoxifying potentially infectious medical and industrial waste, using the heat from electric arc furnaces.

Established the Nomination and Remuneration Advisory Committee
Strengthened auditing structure by collaborating with the Accounting Auditor and the Internal Auditing Department

Medium-term Goals:

Increase the volume of shipments and become more profitable in overseas steel business; aim to increase profits in its overseas steel business by up to 30% of the Company’s group total earnings by building a framework for annual shipments of 2.2 million tons abroad and improving profitability

Sluggish demand for steel products in the Domestic Steel business segment
Weakening market conditions and shipment volume decreases in the Overseas Steel business segment due to COVID-19
Intensified competition in Vietnam
Weakening market conditions in the United States
Downward trend in construction demand in Japan
Competition from many steel minimill companies and excess production capacity
Rising prices for energy, including electrical power and fuel
Changes to external environments related to logistics
Quality-related issues

Maintaining effective price levels in Domestic Steel business segment
Cost cutting and enhancing collaboration between Vietnam Italy Steel Joint Stock Company (VIS) and Kyoei Steel Vietnam Co., Ltd. (KSVC)
Reformulating sales strategies at Vina Kyoei Steel Co., Ltd. (VKS)
Developing operations in North America through acquisition of AltaSteel Inc. and collaboration with Vinton Steel, LLC
Improving productivity and reducing electric power consumption
Increasing transportation efficiency and securing more shipping capacity
Building a quality control framework through actions such as improvement requests received in response to important quality management-related issues uncovered by quality audits

Total Carbon Emissions:296 kg/ton CO2e (Japan)

CO2 emissions (in Japan) were just around 296 kg/ton (based on results for the fiscal year ended March 31, 2021), which is low compared with other electric arc furnace steelmakers.
Developed a proprietary technology for completely detoxifying and recycling industrial waste and medical waste around 30 years ago.

Donation from the MESSCUD Medical Treatment Safety Fund ¥422.8 million in total
Emphasis on health management, maintaining safe and pleasant workplaces, helping employees stay healthy, and providing a variety of benefits.
Group companies will continue to hire many types of people and upgrade education and training programs

Established the Nomination and Remuneration Advisory Committee as a voluntary advisory body to the Board of Directors.
Strengthened auditing structure by collaborating with both the Accounting Auditor, Accounting & Financing Department, and the Internal Auditing Department through quarterly reviews.

Long-term Goals:

Medium-term Goals:

Reduce CO2 emissions by 50% in FY2031 compared with FY2014 (at domestic production locations).

Expanding overseas where construction demand is expected to grow
Boosting sales capacity, cutting manufacturing costs, improving product quality, and developing value-added products.
Appropriate judgments, while gathering information, by considering factors such as purchase prices and timing. Securing trustworthy suppliers.
Improving productivity primarily by reducing electric power consumption while working to reduce costs for energy and other commodities.
Conducting groupwide integrated quality management and systematically conducting quality audits.