NS United is preparing to invest in tonnage for coastal LNG transportation and bunkering, according to a new business plan it launched this week.

The Tokyo-headquartered company, a part of the giant Nippon Steel group, is preparing alternative business streams ahead of a predicted slowdown in growth in its main iron ore and coal transportation markets from 2030.

Nippon Steel has recently announced a number of temporary furnace closures at its main steel mills during the coronavirus pandemic and is lining some up for long term closure.

The new NS United plan, dubbed Driving U Forward Over the Next Decade, has been launched as the company celebrates a decade since it was formed through a merger between Nippon Steel Shipping and Shinwa Kaiun.

With an emphasis on environmental social and governance principles the plan targets clean energy markets and low carbon emission ships to create more sustainable business model.

The company said future investment will be aimed at domestic inland LNG tonnage and LNG-fuelled ships.

The outfit is also ready to develop in LNG bunkering facilities in Japan to supply the new investment in LNG fuelled bulk carriers in its main iron ore transportation business.

NS United said its business would be built around a one stop shop model. That would involve its inland company, NS United Naiko, distributing imports of iron ore, biomass fuel, LNG and coal around Japan. It would also involve the distribution of steel products exports.

The tanker business does not seem to feature in NS United’s upcoming business plan. It recently sold its last VLCC the 302,000-dwt Yugawasan Maru (built 2005).

The company does have three LPG carriers and a VLGC.

The first stage of the business plan runs between fiscal 2020 and fiscal 2023. However, the company has declined to give detailed financial figures on its profit targets because of the unknown impact of coronavirus on the world economy.

Under the current situation it would only go as far as to say it is targeting an ordinary profit of JPY 10bn ($92.8m), a return on equity of 10% and a debt to equity ratio of less than one by 2023.