SANJO-SYOUTETSU ASSOCIATION

Sanjo Steel Association Chairman Hiroaki Toyama

I would like to express my sincere gratitude to all union members for your continued understanding and cooperation in our union activities.
I am Hiroaki Toyama, and I was appointed as the 20th chairman of the Sanjo Steel Association at the regular general meeting held in May 2025.
I am deeply humbled to take on the significant responsibility of leading this association, which boasts a long and distinguished history of 134 years. Although my abilities may be limited, I am committed to dedicating myself wholeheartedly to meeting your expectations. I sincerely ask for your guidance and continued support.
Turning to the current economic climate, the recent Monthly Economic Report from the Cabinet Office maintained its basic assessment that the economy is "recovering moderately, but uncertainty remains, particularly regarding US trade policy." The tariff issues driven by US President Trump are not merely trade policies; they have the potential to trigger a comprehensive review and structural reform of the entire global supply chain. If companies accelerate their shift toward local production and procurement, it could, in the long term, lead to a contraction in domestic production and, consequently, the hollowing out of our regional economy.
Furthermore, the ongoing situation in Ukraine since 2022 and the tensions in the Middle East centered on Iran and Israel since this fiscal year are not just political and military issues. They are having a direct impact on international trade and corporate strategies for logistics, contracts, and procurement. For import-dependent countries, including Japan, the practical effects are severe, such as soaring energy prices, logistical delays, and more complex customs procedures. It is imperative that we closely monitor these developments.
Meanwhile, as you are all aware, the steel industry is currently facing a major turning point.
Domestic crude steel production in 2024 fell to 84 million tons, a significant reduction from its peak of 140 million tons. Steel manufacturers are undertaking structural reforms under the banners of "shifting from quantity to quality" and "creating higher value-added products." Additionally, addressing decarbonization is an urgent task, involving the transition from blast furnaces to electric arc furnaces and the introduction of new technologies like hydrogen-based steelmaking. They are undertaking major initiatives in the transition to carbon neutrality and the acceleration of digitalization.
As steel manufacturers undergo a period of transformation, we in the steel distribution industry must also adapt flexibly and reform our own practices. Amid labor shortages driven by a declining birthrate and work-style reforms, investing in labor-saving measures, promoting digital transformation (DX), and utilizing AI have become essential conditions for the growth of our entire industry. Furthermore, the restructuring of supply chains has become imperative.
In this environment, through the activities of our Sanjo Steel Association, we are committed to engaging in initiatives that contribute to the economic development of this district, a major center for metal processing enterprises.
I deeply appreciate your understanding and cooperation to date, and I sincerely ask for your continued support for our association's activities as we move forward. With this, I conclude my message.