Company history

Okada Kikujiro founded Tokyo Steel in Adachi, Tokyo, in November 1934 with two open-hearth furnaces, one electric furnace and a small rolling line. Its raw material was scrap, not ore — an origin entirely separate from the integrated blast-furnace mills, and the reason its postwar leader, Iketani Taro, could refuse the arrangements that organized the rest of the industry. He joined neither the joint-sales scheme steered by the Ministry of International Trade and Industry nor the scrap cartel, published his own prices, and sold direct to users. The habit earned the company its lasting nickname in Japan: the rowdy outsider of the steel business.

Independence had to be paid for with plants. From 1960 the company built a western base at Kurashiki in Okayama, where the first open-hearth furnace fired in 1962 and, in 1969, a heavy rolling mill began mass-producing large H-beams — the first electric-arc maker in Japan to attempt a product the blast-furnace mills treated as theirs. Kochi followed in 1969, and in 1971 Tokyo Steel absorbed Daimaru Steel, whose shares it had quietly taken two years earlier, to open a Kyushu works; within two months it had ripped out the acquired equipment and installed 50-ton electric furnaces and continuous casters instead. The company moved its head office to central Tokyo in 1974, listed on the second section of the Tokyo Stock Exchange the same year, and reached the first sections of both Tokyo and Osaka in 1976.

Then it did the thing it would keep doing. With three consecutive years of ordinary losses on the books, it spent ¥22 billion to shut the Okayama open hearths, close the old Edogawa works, and install two 140-ton electric furnaces — finishing the work in 1978, just as demand recovered, and posting ¥10.7 billion of ordinary profit. Forty-five years after its founding, a small prewar scrap melter had become a nationwide, fully electric-arc producer, run since 1975 by the founder-family second generation, Iketani Masanari.

Winning the H-beam market did not make the company safe. As the big integrated mills finished pulling the other electric-arc producers into their orbits, Iketani Masanari read the situation plainly: an unaligned maker could stay unaligned only by moving into the products its rivals depended on. Kyushu began rolling large H-beams and universal plate in 1984; a 130-ton direct-current furnace followed in 1989, cutting power consumption; and in October 1991 Okayama started up a wide hot strip mill — the first electric-arc hot coil in Japan. The ¥70 billion outlay, close to a full year’s earnings, was made without borrowing.

The timing was the problem. Losses ran for five straight years from the year after the hot coil line started, and a site bought at Mie was never built on. Even so the company kept broadening downstream, adding pickled sheet in 1995, a new eastern rolling and steelmaking base at Utsunomiya in the same year, and cold-rolled and surface-treated products at Okayama in 1997 — pushing an electric-arc maker into the full flat-product chain that had belonged to the blast furnaces.

By the mid-2000s the pattern had a name and a price. Kyushu started plate production in January 2007; two months later the company bought 1.045 million square metres at Tahara in Aichi and committed roughly $1.4B (¥170bn) to what would be one of Japan’s largest electric-arc works. In June 2006 leadership had passed from the founding family to Nishimoto Toshikazu, a career steelmaker who had run the Okayama melting and rolling departments — and who would hold the presidency for seventeen years.

Tahara was the logic of the previous thirty years carried to its conclusion: one integrated site in central Japan, melting scrap and rolling it all the way to cut sheet, competing with the blast furnaces on their own flat products. The hot strip mill started in November 2009, cut-sheet equipment a month later, and the melt shop in June 2010. The plant worked. The market did not.

The startup landed on top of the global financial crisis. Revenue fell 62% in the year to March 2010, to ¥105.7 billion from ¥278.4 billion, and the company slid to an ordinary loss. Three consecutive loss-making years followed, culminating in a net loss of ¥146.6 billion for the year to March 2013 as Tahara was written down. A ¥170 billion bet made by an independent that borrowed nothing had arrived precisely at the trough.

What Nishimoto did next defined his tenure. He kept the company debt-free, kept Tahara running rather than mothballing it, and cut elsewhere — halting production at Takamatsu in 2012 as electric-arc capacity across the industry ran ahead of demand, and converting the site into a distribution centre. Earnings turned in the year to March 2015, and the plant that had nearly broken the company began the slow climb to becoming its main source of profit.

Recovery restored the argument for the original technology. Melting scrap in an electric furnace emits roughly a fifth of the carbon dioxide of the blast-furnace route, and in June 2017 Nishimoto wrote that structural advantage into a long-term plan, Tokyo Steel EcoVision 2050 — revised in 2021 around the harder ideas of carbon-negative operation and upcycling, and backed the same year by solar installations at all four domestic plants. The company moved to the Prime Market in 2022 and restarted the idled Okayama hot strip mill that December, catching the post-pandemic price surge: net profit reached ¥30.8 billion in the year to March 2023, the vindication of Tahara that had taken fifteen years.

In June 2023, after seventeen years, Nishimoto handed over to Nara Nobuaki — a rare promotion from the administrative side rather than sales or the plants. Nara has kept the two habits that define the company, challenging on products and publishing its own prices to talk directly to the market, and made environmental value the third pillar: a low-carbon domestic brand launched in July 2024, and a European green-steel line, enso, that has sold more than 100,000 tonnes since its 2024 debut.

The target underneath it is volume. Nara aims to roughly double crude steel output to about 6 million tonnes by fiscal 2030, on the argument that Japan generates some 30 million tonnes of scrap a year that should be recycled at home rather than exported. Earnings came off the peak in the year to March 2025 — ¥326.8 billion of revenue, ¥21.2 billion of net profit — and the company trimmed its dividend and shelved buybacks to preserve cash. The founding family remains present not in management but in the register, through the Iketani science foundation and a family holding company.