Research and Development

Muroran Research Laboratory

Research and development activities were almost entirely
funded by the parent company (The Japan Steel Works,Ltd.). Combined spending on research and development
for the Steel Products business and the Machinery
Products business amounted to ¥4,178 million (US$43million).
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 inan effort to put new products and technologies into effectas quickly as possible. In terms of the direction of researchand development, our Research & Development
Headquarters continues to promote cooperation withindividual business divisions in order to: (1) improve thecapabilities, performance and reliability of our coreproducts and (2) develop products and businesses to meetrequirements in new business fields.
Our Research & Development Headquarters
encompasses our headquarters (located at Head Office),
the Muroran Research Laboratory (situated on thepremises of the Muroran Plant), and the Machinery
Research Laboratory (located at the Hiroshima Plant).
Our basic research and development policy is as follows.
1. Promoting the development of new products andbusinesses by focusing on the technological fields of
new energy & energy savings, information &telecommunications, nanotechnology & materials, andnew production technologies, which are directly related
to our current business activities. We aim to expand ourfields of business by improving our core technologies
while pursuing increased collaboration between theResearch & Development Headquarters and ourbusiness divisions.
2. Promoting promising themes for future technology andbasic research to fulfill the needs of 21st century society,and developing them into research and development
projects that will translate into new products andbusinesses in the future. Simultaneously, we conduct
research on elemental technologies used in existingproducts to realize innovations for those products.
3. Making strenuous efforts to identify new themes for

Hiroshima Research Laboratory

research and development that meet current market
needs, and selecting new key development projects thathave a high potential to become significant earners for
the Company in the future. We will make investments
in human resources and property, and allocate funds toselected fields, while forming alliances to shorten
development time where it is thought appropriate.

Overview of R&D activities by businesssegment
GG
G Steel Products
In terms of the development of materials-related products,
we have been carrying out research and development insuch areas as clad steel pipes for natural gas transportation,high alloy materials for high-efficiency thermal powergeneration, forged steel products for next-generation
nuclear power plants, and high-performance nonferrous
alloys. We have also been developing hydrogen-absorbing
alloys, as well as their applied systems, such as hydrogentanks for fuel cells. For fiscal 2008, spending on steel
product research and development totaled ¥1,573 million(US$16 million).
GG
G Machinery Products
In the field of machinery-related products, we have beendeveloping low-cost production technologies for highperformance 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
been working on laser applications, including systems for
cutting-edge laser annealing equipment used in theproduction of TFT (thin-film transistor) liquid crystaldisplays, and other applications for laser devices. In thefield of new energy, we have been working on the designof wind turbine blades for use at wind power generation
plants, and are endeavoring to establish various related
analytical technologies. We are also developingpressurized hydraulic compressor equipment. Spending on
machinery product research and development totaled¥2,605 million (US$27 million) for fiscal 2008.

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