[Company analysis] JFE Holdings, Inc. (JFEホールディングス)

「JFE Holdings, Inc. (JFEホールディングス)」is a holding company that includes the major Japanese steel companies「JFE Steel(JFEスチール)」and「JFE Engineering(JFEエンジニアリング)」. Together with「Nippon Steel Corporation(日本製鉄)」and「Kobe Steel, Ltd.(神戸製鋼所)」, this company is one of the three largest steel manufacturers in Japan. According to 2016 standards, crude steel production is about 30.29 million tons, which is the second largest in Japan after「Nippon Steel」and the eighth largest in the world. The number of consolidated employees is approximately 61,234.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	JFE Holdings, Inc.
Company name (Japanese)	JFEホールディングス
Date of establishment	Saturday, June 8, 1912
Headquarters location	〒100-0011 東京都千代田区内幸町2丁目2番3号
Capital	147,100
Consolidated sales	3,873,662
Consolidated operating profit	232,070
Consolidated total assets	4,709,201
Consolidated capital	1,991,759
Capital adequacy ratio	42.3%
Consolidated number of employees	61,234

 

 

 

2. Summary and Features

 
「JFE Steel」, a company of the JFE Group, is a blast furnace company that uses iron ore as a raw material and performs integrated production of steel products. Another core company of this group,「JFE Engineering」, is a comprehensive engineering company that designs and builds energy and environmental systems, water resource treatment systems, steel structures, industrial machinery, etc.

The name "JFE" was created by combining "Japan", "Steel(Fe)" and "Engineering". 「JFE Holdings」was established in 2002 by the business integration of「Kawasaki Steel Corporation(川崎製鉄)」and「Nippon Kokan(日本鋼管)」. The predecessor company, Nippon Kokan, was the first private blast furnace supplier in Japan, established in 1912. On the other hand,「Kawasaki Steel」was an independent company of the steel manufacturing division of 「Kawasaki Heavy Industries, Ltd.(川崎重工業)」which was established in 1878.

Both of the above companies kept their independence during the Second World War, so it seems that they still have the atmosphere of "respecting freedom and boldly taking on challenges". JFE Steel's business was carried out by four plants and seven plants in Japan.

「JFE Group」has been expanding overseas since the 1980s, the predecessor of the "Kawasaki Steel" era. They are still investing in companies in Korea, China, Thailand, and the United States. In February 2012, this company purchased 15% of stock share  in「JSW Steel」, a major Indian blast furnace company. and from 2016, they have entered into a technical tie-up with「ThyssenKrupp」in the automotive steel sheet field.

 

 

 

3. Major Business

 

 ■ JFE Steel
With the world's highest level technology, they are implementing integrated production of steel.

■ JFE Engineering
In addition to engineering business in the environment and energy fields, they also handle fields such as bridges, iron structures and industrial machinery.

■ JFE Shoji
this company conducts domestic and overseas transactions of steel raw materials, non-ferrous metals, chemicals, fuels, etc., centering on steel products.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		3,308,992	3,678,612	3,873,662
Consolidated operating profit		96,746	246,669	232,070
Consolidated total assets		4,336,069	4,460,903	4,709,201
Consolidated net assets		1,921,809	2,006,563	1,991,759
Breakdown of sales	Steel business	1,500,929	1,717,038	2,441,696
	Engineering business	416,220	380,981	471,673
	Trading business	1,391,842	1,580,592	960,292