Japanese producers align production with slumping demand

Japanese manufacturers across different industry sectors, from steelmakers to ethylene producers, are feeling the spillover effects of rapidly weakening consumer spending. Plummeting demand has left many Japanese companies with excess output capacity, raising the possibility of further industry consolidation. Nippon Steel Corp., JFE Steel Corp. and Kobe Steel Ltd. have decided to reduce output for the second half of fiscal year 2008 ending in March 2009 by more than 4.1 million metric tons. Mitsui Chemicals Inc. and Mitsubishi Chemical Corp. are scaling back their North American production of resins for automotive use as well. Asahi Glass Co. will reduce production of automotive glass at its Kentucky, U.S. plant by 25%. (December 15, 2008)