Page 48: of Maritime Reporter Magazine (October 1970)

Professional Japan's Steel Industry Expects Great Demand From Ocean Development

Japan's steel industry expects a substantial domestic steel market from development of ocean resources and ocean space utilization, according to the Japan Steel Information Cen- ter in New York City.

In the next 10 years, Japan's development of ocean resources and related activities are expected to require a total of some 47-million net tons of steel. Total requirement for 1970 is forecast to be about 550,000 tons. Rapid in- creases are expected in the years ahead with an average annual increase of about 45 per- cent. Annual requirement of over 15-million tons in 1979 is anticipated.

The Center cited a recent report of the

Kozai Club, a Japanese steel industry trade as- sociation, summarizing the industry's partici- pation in the country's massive efforts in ocean technologies. The Kozai Club, made up of virtually all leading steel makers and steel trading firms in Japan, formed a Committee for the Promotion of Ocean Development in

July 1969 with Takeo Hori, now auditor of

Nippon Steel Corporation, as chairman.

In its first progress report, the Hori com; mittee noted that the Japan Iron and Steei

Federation and the Society of Steel Construc- tion are leading elements of the joint effort by the Japanese Government and private in- dustry to develop ocean resources.

Japan's individual steel companies have par- ticipated in their industrial group programs, and have also invested in their own subsidi- aries for ocean development. New ventures on and under the oceans will require special steel products to withstand the ocean environ- ment, the Kozai Club pointed out. Technology departments of the Japanese steel companies are conducting extensive programs in that di- rection. Some Japanese steel mills have also concluded business of technical agreements with United States and European corporations to bring the most advanced ocean technology to Japan. The report also noted that the move into the oceanology field may further alter the traditional role of Japan's steel mills as mere suppliers of materials. The trend, it said, is for Japan's steelmakers to extend their work into new fabricating ventures of oceanology.

Governmental programs have been under way since 1961, headed by the Council for

Oceanic Science and Technology. Several min- istries and government agencies have develop- ed special oceanology departments in the last decade, and government budgets for these ac- tivities reached $136 million in 1970. These ex- penditures are expected to more than double next year.

In the last two years, the Kozai Club re- ports, six of the great private industrial groups have formed special companies to perform dif- ferent aspects of ocean development.

The Mitsubishi Group has organized the Ja- pan Ocean Drilling Company, which now is developing oil wells in Indonesia.

The Mitsui Group has Mitsui Ocean De- velopment Company, specializing in ocean en- gineering and marine services, with future targets in the development of ocean energy and utilization of offshore space.

The Sumitomo Group established Offshore

Equipment, Ltd., to provide machinery and equipment for marine work, and Ocean Sys- tems Japan, Ltd., for deep-sea diving services.

The Fuji Group formed the Fuyo Marine

Development Company to conduct research and development of oceanic resources. The

Sanwa Group has the Sanwa Society for Re- search into Ocean Exploration, and the Daiichi

Group has Daiichi Ocean Exploration Society, both organizations engaged in gathering ma- rine development information.

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