Investments will be mainly in the デュエルビッツ プロモーションコードteel segment on improving production technology. Other investments will be in labor-savings and repairs and facility maintenance.

An ongoing project is the construction of a second IPP power plant at Kobe Works. However, capital investment is funded through project financing arranged by subsidiary デュエルビッツ プロモーションコードhinko Power Inc., the operating company for the IPP business, and is therefore separate from デュエルビッツ プロモーションコードteel's capital investment plan.

1. Construction costs and outlays

(in billions of yen)	FY2002	FY2003	% of change
	(estimated)	(planned)
Construction costs	24.0	31.0	29%
デュエルビッツ プロモーションコードteel only	15.0	21.0	40%
Outlays	25.0	31.0	24%
デュエルビッツ プロモーションコードteel only	15.0	21.0	40%
Depreciation	61.0	57.0
デュエルビッツ プロモーションコードteel only	42.0	38.0

Notes: デュエルビッツ プロモーションコードteel figures form a subset of each category.
Figures in parentheses denote decreases.

2. Investments by Segment

	Construction Costs (in billions of yen)
デュエルビッツ プロモーションコードteel	21.0
Aluminum & Copper	6.0
Others	4.0
Total	31.0

3. Major Investments

(in billions of yen)	Amount in FY2003	Total cost	Construction Period
Kakogawa Works
Revamping of No. 3 continuous caster	1.6	3.0	Dec. '01 – Apr. '03
(Product: high strength steel sheet)
Revamping of pickling equipment at
continuous annealing line	0.7	0.7	Mar. – Nov. 2003
(Product: high strength steel sheet)
Remodeling flaw detection line at
blooming mill	0.5	0.5	Apr. – Nov. 2003
(Product: specialty steel wire rod)

Additional Information on IPP Project

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(in billions of yen)	FY2002	FY2003
	(estimated)	(planned)
Construction costs	10.0	56.0
Outlays	9.4	62.0