NIPPON KOKAN STEEL

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The Nippon Kokan Strip Mill Project will provide a loan to Nippon Kokan, third largest Japanese steelmaker, producing plates and sheets, shapes and bars, and tubular products. The project is to finance is the facilities to be constructed in the new Mizue plant of the company's works situated at Kawasaki near Tokyo. The new hot and cold strip mills will enable Nippon Kokan to produce a higher quality product at a lower cost. The installation of modern flat products mills is essential to enable Japan to maintain its position as an exporter of galvanized sheet and manufactured products using large quantities of plate and sheet. Nippon Kokan will achieve very substantial cost reductions as a result of the installation of the new strip mills and the shift to converter steel. These reductions in cost will be reflected in a higher return on sales. This, together with the expected increase in the volume of sales, will result in an increase of over 75 percent in operating profits.