Nippon Steel has started its transition from blast furnace production to electric arc furnace operations at its Kyushu Works facility, marking a major step in the company’s decarbonization roadmap. The project highlights the growing global shift toward lower-emission steelmaking and cleaner production technologies.

The new EAF is designed with an annual capacity of about 2 million tons and is expected to begin production in the first half of fiscal 2028/2029. Nippon Steel is positioning the project as a first-of-its-kind integrated setup for mass production of high-quality steel using a large-scale electric arc furnace, backed by secondary refining and continuous casting facilities.

Total investment in the Kyushu Works transition stands at 630.2 billion yen, or about $3.97 billion, while government support may reach up to 179.9 billion yen. The move reflects Nippon Steel’s broader strategy to modernize operations, reduce carbon intensity, and strengthen long-term competitiveness in premium steel production.