560 MINERALS YEARBOOK, 1985 
 
to 4.4 million tons of raw steel per year. Other mills were being modernized.

 Work on the new steel mill at Vishakhapatnam, the Government's other major
steel project, was proceeding but was slowed by lack of funds. Alternative
scaled-down plans were proposed for possible new integrated plants at Vijayanagar
and Daitari. 
 A 170,000-ton-per-year SL/RN directreduction plant was ordered by Bihar
Sponge Iron for installation at Chandil, Bihar. The plant was intended to
supply iron to existing minimills in the region. 
 Ireland.—Union workers at the Irish Steel Ltd. minimill accepted
a
wage freeze and a reduction in employment in order to keep Ireland's only
steel mill open. Although the EEC had approved financial aid, the Irish Government
refused to provide assistance unless labor costs were reduced. 
 Italy.—Production of iron and steel was restarted at the Cornigliano
works, near Genoa, of Ste. Finanziaria Siderurgica p.A. (Fiñsider)
to produce billets for Finsider plants and for private steelmakers. Cornigliano
had been shut down when its production quota for sheet had been used to reopen
the Bagnoli plant in 1984. Higher costs for electricity and scrap made billets
from Cornigliano attractive as a substitute for steel made in electric-furnace
plants. Privately owned Acciaierie e Ferriere Lombarde Falck S.p.A. offered
to close its hot strip mill near Milan and to transfer its production quota
to Bagnoli in exchange for a Finsider plate plant and financial assistance
from the Italian Government. Similarly, minimills received assistance in
closing excess uneconomical electric furnace capacity. 
 Japan.—The Japanese steel industry planned slightly lower capital
spending in fiscal 1985, the third consecutive drop. Most spending was intended
to improve quality or productivity. Major steel companies were diversifying
into nonsteel areas because of increasing difficulty competing in international
markets. Nippon Steel Corp., the largest steel company in Japan, proceeded
with its planned capacity reduction. Nine inactive blast furnaces were to
be scrapped. Sumitomo Metal Industries Ltd. planned a 3-year program that
was to reduce employment by 14%. Tokyo Steel Manufacturing Co. Ltd., the
largest nonintegrated steel company in Japan, closed its Senju plant in Tokyo
because of inadequate sales in export markets. 
 Korea, Republic of.—Construction of ironmaking and steelmaking
facilities
be- 
gan on the new Kwangyang integrated steel mill of Posco. The first stage,
with a capacity of 3 million tons of raw steel per year, was scheduled to
be completed in June 1987, and a second stage, by the end of 1988. The plant
is designed for eventual expansion to 13 million tons of capacity per year.
Posco was also adding a second cold-rolling mill, with a capacity of 1 million
tons per year, and a third continuous caster at its Pohang plant. 
 Libya.—Construction continued on the 1.2-million-ton-per-year
Misratah
plant, with startup expected in 1986. The plant will use natural-gas-based
direct reduction to provide iron for electric furnace steel making. 
 Malaysia.—A 660,000-ton-per-year directreduction plant began operation
at the new Perwaya Terengganu Sdn. Bhd. steelworks, a joint venture firm
of Heavy Industries Corp. of Malaysia Bhd. The plant is the first commercial
user of direct-reduction technology developed by Nippon Steel. The steelworks
had three 80-ton electric furnaces and ordered a 280,000-ton-per-year section
mill. 
 Mexico.—Raw steel production declined 3% because of continued
weakness
of the domestic economy and a 54% drop in exports. Most of the decline, in
exports was because of the restraint agreement limiting exports to the United
States. 
 Construction of the second. stage of the Siderürgica Lázaro
Cárdenas-Las Truchas S.A. (SICARTSA) works at Las Truchas, Michoacán,
was slowed because of Federal Government budget reductions. The works, which
were to begin some operations in late 1985, included a 2.2-million-ton-per-year
HYL III direct-reduction plant, four 220-ton electric furnaces, three two-strand
slab casters, and a plate mill. 
 Tubos de Acero de Mexico S.A. (TAMSA) was building a 660,000-ton-per-year
electricfurnace melt shop to supply its seamless tube mill. It also planned
to double its direct-reduced iron capacity to 770,000 tons per year in order
to reduce its need for scrap. Another company, Productora Mexicana de Tuberia,
began production of largediameter linepipe at its new mill at Lázaro
Cárdenas. The 330,000-ton-per-year plant was planned to use plate
from the new SICARTSA plate mill. The company is owned by Siderürgica
Mexicana S.A. (SIDERMEX), which is the Government's steel industry holding
company, by the Mexican development bank, and by a consortium of Japanese
companies.