Industrial Complex Restructuring – Part 1: Kashima Targets Growth Through Decarbonization

摘要

The Kashima region of Ibaraki, Japan, is home to a long list of chemical, steel and other such companies, as well as a major industrial zone. But faced with declining domestic demand, rising global competition and more, the Kashima Coastal Industrial Zone – and in particular the basic materials industry that drives it – is in the midst of reorganization and centralization. Last year saw Nippon Steel Corp. (TYO:5401) announce that it will be closing a blast furnace in Kashima by around the end of fiscal 2024. With steelmaking being a core industry in Kashima and having long driven the local economy, it was an announcement that sent shockwaves throughout the area. Moreover, given how approximately 10,000 jobs are set to be affected, the people too are anxious over the decision.