The company aims to establish a plastic recycling plant with an annual capacity of 60,000 tons at the Keihin complex in Kanagawa prefecture in eastern Japan. This move follows the permanent closure of upstream processes and hot rolling operations in September. JFE Steel, in cooperation with JFE group companies, plans to invest ¥6.75 billion (equivalent to $45 million) in the construction of the plant and aims to produce 60,000 tons of plastic pellets annually by purchasing plastic packaging and industrial waste.
This strategic shift could lead to a 60,000 tonnes per year reduction in JFE Steel's consumption of coking coal for steelmaking. The company currently uses approximately 1.8 million tonnes of coking coal annually, while consuming 45,000 tonnes of recycled plastic.