Kobe Steel is considering the installation of a scrap melting furnace at its Kakogawa Steel Works as part of its phased strategy to reduce carbon emissions in steelmaking. The proposed facility is expected to have an annual production capacity of 700,000 mt, with investment estimated at around JPY 100 billion.

The company plans to use more ferrous scrap by combining molten steel from the scrap furnace with blast furnace hot metal in the converter. This approach could help reduce reliance on traditional blast furnace output, support resource recycling, and meet rising customer demand for low-emission steel.

The final decision is expected during Kobe Steel’s next medium-term management plan period from fiscal year 2027, while operations may begin in the early 2030s.