On February 7, Nippon Steel announced that it would suspend 10 plants as a means to restructure its production facilities, including the substantial closure of Nippon Steel Nisshin Kure Works and the suspension of Blast Furnace No. 1 of Wakayama Works. It is quite unavoidable to exert serious influences to many gas companies which are widely engaged in on-site gas supply cases.

　The decisive arrangement at this time was originated by the forecast of an estimated substantial deficit at the operating income amounting to 130 billion yen of the company alone and a total loss of 490 billion yen including those of the consolidated affiliates. It is also attributed to declining of the demand for iron and steel due to the China-US trade war, sluggish pricing and the remaining price-hike of raw materials and fuels due to China’s expanded production for its domestic infrastructure.

　 On October 1, 2012, Shin-Nittetsu and Sumitomo Metal merged to become Shin-Nittetsu Sumikin and in April 2019 it was renamed Nippon Steel Corporation. During that time rationalized was Kokura Works only. However, it has been judged that the company is now compelled to make a large-scaled restructure to reinforce its competition power.

　 For the gas companies, however, Nippon Steel is the biggest user in their on-site supply business for steelmakers. As shown in the table, on-site supply is being carried by Taiyo Nippon Sanso’s Nagoya Sanso Center and Fuji Sanso, Air Water’s Wakayama, Kokura and Kashima and Air Liquide Japan’s Seitetsu Oxiton.

It is not known how much extent of influence may be exerted on the consumption of oxygen and nitrogen gases by the rationalization at this time, but we worry the rationalization may spread and affect the production of liquid argon which is produced together with oxygen gas. There are many cooperative companies around the steelworks which are important users of liquid gases as well as cylinders.
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