Research and Development

Muroran Research Laboratory

Research and development activities were almost entirely
funded by the Company (The Japan Steel Works, Ltd.).
Combined spending on research and development for
the Steel and Energy Products Business and the Industrial
Machinery Products Business amounted to ¥4,487 million(US$53 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,
our Research and Development Headquarters continues topromote cooperation with individual business divisions
in order to: (1) improve the capabilities, performance andreliability of our core products and (2) develop products
in new business fields based on our core and differentiatedtechnologies.	Our Research and Development Headquarters
encompasses our headquarters (located at Head Office),
the Muroran Research Laboratory (situated on the premises of the Muroran Plant), and the Hiroshima ResearchLaboratory (located at the Hiroshima Plant).
Our basic research and development policy is as follows.
1. Promoting 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. We aim to develop our existing business by focusing on increasing and upgrading our coretechnologies while pursuing increased collaboration
between the Research and Development Headquarters
and our business divisions.
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 arefocusing on energy fields and on further expanding thenumber of our many number one products while at thesame time commercializing products in new fields.

Hiroshima Research Laboratory	In Machinery Products, we are aggressively promoting the expansion and upgrade of industrial machinery
including plastics machinery and IT equipment. We willprioritize investments in business resources 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
GGG 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 2010, spending on steel and energy products’ research and development totaled ¥1,641 million(US$19 million).
GGG 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,and high-precision molding technology for plastic extruder
and injection molding machinery. We have also beendeveloping higher performance compressors and equipment for making film, as well as laser applications, including systems for cutting-edge laser annealing equipmentused in the production of TFT (thin-film transistor) liquid
crystal displays, and other applications for laser devices.
Spending on industrial machinery products’ researchand development totaled ¥2,845 million (US$34 million)
for fiscal 2010.

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