Research and Development

Muroran Research Laboratory

Hiroshima Research Laboratory

Research and development activities were almost entirely
funded by the Company (The Japan Steel Works, Ltd.)during fiscal 2012. Combined spending on research anddevelopment for the Steel and Energy Products Businessand the Industrial Machinery Products Business in fiscal
2012 amounted to ¥4,054 million (US$43 million).	As a materials and mechatronics company, we strive
to develop new products and production techniques using
our own technology, while also actively promoting widespread technical alliances and joint development in aneffort to put new products and technologies into effect as
quickly as possible.	In terms of the direction of research and development, ourResearch and Development Headquarters continues to promote cooperation with individual business divisions in orderto: (1) improve the capabilities, performance and reliability of
our core products and (2) develop products in new businessfields based on our core and differentiated technologies.	Our Research and Development Headquarters encompasses our headquarters (located at Head Office), theMuroran Research Laboratory (situated on the premises ofthe Muroran Plant), the Hiroshima Research Laboratory(located at the Hiroshima Plant), and the Research &Development Center (located at the Yokohama Plant).
Our basic research and development policy is as follows
1. We promote the development of new products and businesses by focusing on the technological fields of newenergy & energy savings, information & telecommunications, nanotechnology & materials, and new production
technologies, which are directly related to our current
business activities. In addition, we pursue increased
collaboration between the Research and Development
Headquarters and our business divisions. Accordingly,
we aim to develop our existing business by focusing on
expanding and upgrading our core technologies.
2. Promoting not only basic research aimed at future technologies and the needs of 21st century society but also
research on component technologies used in existingproducts, we will develop these into research and development projects that will translate into new products
and businesses in the future as well as into innovations
and new possibilities for existing products.
3. In product development for Steel Products, we are focusing on energy fields and on further expanding the number of our many No.1 products while commercializing
products in new fields. In Machinery Products, we are
aggressively promoting the expansion and upgrade of

Research & Development Center (Yokohama)industrial machinery, including plastics machinery andIT equipment. We will prioritize the investment of business resources in these types of machinery by defining
a framework for commercialization with an eye toward
mergers and acquisitions and the forging of alliances.

Overview of R&D activities by businesssegment▷▷▷ Steel and Energy Products BusinessIn terms of the development of steel products centered onmaterials, we have been carrying out materials development in such areas as clad steel pipes for natural gas transportation, large steel castings and forgings and high alloymaterials for high-efficiency thermal power generation,
forged steel products for next-generation nuclear power
plants, and high-performance nonferrous alloys, as well as
manufacturing process technology development. We havealso been pursuing technological development to create
more advanced materials and component technologies forexisting products. In the field of new energy, we have set
out to design wind turbine blades for use at wind power
generation plants, establish various reliability-related analytical technologies and develop more advanced component technologies for power generators.
For fiscal 2012, spending on steel and energy products’
research and development totaled ¥1,567 million (US$16million).
▷▷▷ Industrial Machinery Products BusinessIn the field of machinery-related products, we have beendeveloping low-cost production technologies for high performance magnesium alloy injection molding machines,
the commercialization of aluminum die-casting devices,
tightlock couplers and dampers tailored to European specifications, high-precision molding technology for plastic
extruders and injection molding machines, and highly
functional micro-nano melt transcription molding processequipment. We have also been developing highly functional and higher performance compressors and equipment for making film, as well as systems for cutting-edge
laser annealing equipment used in the production of TFT(thin-film transistor) liquid crystal displays, and otherapplications for laser devices.	Research and development expenses for the fiscal year
under review came to ¥2,486 million (US$26 million).

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