Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Kenichi Hori) has reached a decision to invest in EVERSTEEL Inc. ("EVERSTEEL", Head Office: Bunkyo Ward, Tokyo, CEO: Keijiro Tajima), which develops and sells AI-based steel scrap inspection systems.

As a measure to drive decarbonization, the steel industry is expected to increase its output of steel produced using the electric arc furnace method, which emits less carbon dioxide (CO₂). This is likely to result in expanding demand for steel scrap. Meanwhile, the industry is also experiencing a range of issues, including the need to ensure reliable access to supplies of scrap of suitable quality. Another problem is the shortage and aging of workers capable of handling scrap quality assessment and receiving processes. To address these issues, streamlining and sophistication of feedstock procurement and quality control are essential for maintaining and reinforcing the competitiveness of the industry as a whole.

EVERSTEEL is a startup originating from the University of Tokyo, whose vision is "Steel at the heart of the future." It develops products that drive the digital transformation (DX) of the steel and recycling industry. In Japan, it is pioneering the use of AI image recognition technology to develop and commercialize inspection systems capable of automatically identifying the quality of steel scrap and detecting impurities. Its systems are already in use at Japan's multiple steelworks.

In March 2023, Mitsui and EVERSTEEL signed a memorandum of understanding (MOU) concerning the creation of an eco-system for the achievement of carbon neutrality in the steel and recycling industry. The companies have since engaged in multifaceted collaboration, such as sales support toward the commercialization of AI inspection technology in Japan. Through this investment, Mitsui will assist EVERSTEEL with management and business expansion, as well as provide sales support through Mitsui and MM&KENZAI Corporation (Minato Ward, Tokyo), a Mitsui affiliate in Japan, with the aim of accelerating the development and frontline introduction of systems to drive the DX of the steel industry.

Mitsui has identified Industrial Business Solutions as one of its Key Strategic Initiatives. By ensuring a reliable and sustainable supply of resources and materials that are vital for the development of society, we strive to provide real solutions for industrial issues. Mitsui will continue to contribute to both decarbonization and the enhancement of competitiveness of the steel industry by combining the business platforms and networks of its steel value chain with DX solutions.

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