JFE Steel announced in a statement that it has invested 329.4 billion yen to set up a large modern electric arc furnace (EAF) at its Kurashiki site at West Japan Works.

The company announced such a plan after it got approval from the Japanese government for a 104.5 billion yen grant to support the setup of the new EAF.

The new EAF will utilize the latest technologies and innovative solutions, such as high quantity and efficiency smelting, and it will also help the usage of hydrogen. It is also one of the Green Innovation (GI) Fund projects, managed by Japan's New Energy and Industrial Technology Development Organization (NEDO). This new EAF will also help to reach the target of reduction in carbon emissions as part of the JFE Group’s 2025 environmental vision.

The expected annual production capacity from the new EAF will be around 2 million tons of steel, and the furnace is planned to be commissioned between April and June 2028. Other construction of new facilities is also included in the project.