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2006

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Kobelco Welding of Europe to increase production of flux-cored welding wire
March 15, 2006

Kobe Steel's Netherlands-based subsidiary, Kobelco Welding of Europe B.V., plans to invest 10.9 million euros to produce fluxed-cored welding wire for carbon steel, beginning in 2007. This type of wire is commonly used to weld ordinary steel, which is used in large quantities in the shipbuilding industry and offshore structures.

Kobelco Welding of Europe currently makes flux-cored welding wire (FCW) for stainless steel. Production capacity is approximately 1,000 metric tons per year. With growth for carbon steel FCW projected to increase in Europe, Kobelco intends to add production capacity of 6,000 metric tons per year for carbon steel FCW. This will give Kobelco a total capacity of 7,000 metric tons by 2008, making it one of the largest producers of FCW in Europe.

Flux-cored welding wire consists of a steel sheath and flux. Flux composition contributes greatly to the mechanical properties, welding workability and other capabilities of the welding wire.

Owing to outstanding bead shape and appearance, FCW is commonly used in the welding of ships, offshore structures, bridges and other structures. In Japan, the market for this welding consumable is growing year by year.

Demand for carbon steel FCW is also increasing remarkably in South Korea. To meet this demand, Kobe Steel's Korean affiliate, Kobe Welding of Korea Co., Ltd., plans to boost production capacity to 1,600 metric tons per month in fiscal 2006
Investment plans
Product Flux-cored welding wire for carbon steel
Production 6,000 metric tons per year
Investment 10.9 million euros (about 1.47 billion yen)
Equipment 6 production lines
Area 6,000 sq. m.
Schedule Construction of new facility to start in mid-2006
Production to commence in early 2007
Profile of Kobelco Welding of Europe B.V.
Managing Director Kimihiko Nakamura
Location Heerlen, Limburg, The Netherlands
Established June 1994 (production start-up in December 1995)
Equity Kobe Steel 94.6%, Sojitz Group 5.4%
Business Production and sale of flux-cored welding wire for stainless steel
Production 1,000 metric tons per year
Employees About 40

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