Major Japanese steelmaker JFE Steel may shutter a blast furnace in western Japan as it works to build an electric furnace that emits less carbon dioxide.
JFE has three blast furnaces at its steel mill in Kurashiki. Sources say the company may retire one of them in five to eight years when it becomes due for maintenance.
The company separately plans to build a large electric arc furnace at the same facility and is stepping up efforts to clear technical hurdles.
Production of high-grade steel needed for things like automobiles is said to be more difficult with electric furnaces.
JFE has already decided to close one of its eight blast furnaces in Japan. The country’s steelmakers are under pressure to decarbonize as they are the biggest industrial source of CO2 emissions.
