Kyoei Steel Adjusts US Plant Investment Plan Again

TOKYO, Jul 31 (Pulse News Wire) – Kyoei Steel Ltd. (5440.T) announced changes to its equipment investment plan for Vinton Steel LLC's manufacturing facility in Texas.

At a board meeting held on July 31, the company decided to further revise the project due to rising costs related to inflation and increased construction demand. The revised total investment amount now stands at $437 million. Construction work, originally scheduled to begin in April 2026, has been pushed back to July 2026. The startup of the new steel plant remains unchanged at March 2027, while continuous commercial production is set for October 2027. Despite the cost increase, the company expects to maintain its financial key performance indicators, including a capital adequacy ratio of 50% or higher and a net debt-to-equity ratio below 0.5 times.

The project involves building a new steel mill and significantly upgrading existing rolling facilities, aiming to enhance productivity and stabilize revenue through advanced technology such as direct-billet welding and rolling techniques. Kyoei Steel plans to finance the additional investment through a combination of internal funds and bank loans. Vinton Steel LLC, located in Texas, operates under Kyoei Steel America LLC, which holds a 100% stake. The subsidiary was established in 1962 and acquired by Kyoei Steel in 2016. It specializes in manufacturing and selling reinforcing bar steel and ball-bearing rod steel with a capital of $148 million.

Looking ahead, the company stated that the adjustments would not impact its current fiscal year earnings forecast but noted that any revisions would be promptly disclosed.