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Bloated inventories squeezing capital investment

Mitsubishi Chemical's Kashima plant in Kamisu, Ibaraki Prefecture, produces ethylene.

TOKYO -- Mounting inventories have Japanese manufacturers losing their willingness to spend on new facilities and equipment. And an increasingly uncertain future is only making them more cautious.

     Japanese steelmakers have been turning out less than they were before spring, largely due to a huge global oversupply and slower car sales at home.

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