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Kobe Steel to increase capital investments 77% in fiscal 2006
April 25, 2006
TOKYO, April 25, 2006-Kobe Steel, Ltd. plans capital investments of 110 billion
yen in fiscal 2006, ending March 31, 2007, up 77% from the estimated 62 billion
yen in fiscal 2005.
Most of the investments will be in the Iron & Steel segment and the Aluminum
and Copper segment. The projects are focused on remodeling a blast furnace for
the stable production of steel products and improving the manufacturing capabilities
for "Only One" upper-end products to increase the competitiveness of the company.
Other investments will cover labor-savings and necessary repairs and maintenance
work.
Construction costs and outlays (parent only)
(in billions of yen)
FY2005 (estimated)
FY2006 (planned)
% of change
Construction costs
Iron & Steel only
62
43
110
84
77%
95%
Outlays
Iron & Steel only
54
38
88
63
63%
66%
Depreciation
Iron & Steel only
52
35
57
41
Note: Iron & Steel segment figures are a subset of each category.
FY2006 Investments by segment (parent only, construction cost basis)
(in billions of yen)
FY2005 (estimated)
FY2006 (planned)
Iron & Steel
43
84
Aluminum & Copper
10
14
Others
9
12
Total
62
110
Main projects
The main projects for fiscal 2006 are as follows:
Iron & Steel Segment
Kakogawa Works
Project:
Refurbishing of No. 2 blast furnace
Products:
Steel sheet, plate, wire rod
Amount in FY2006:
35 billion yen
Total investment:
40 billion yen
Construction period:
September 2004-March 2007
Kobe Works
Project:
New construction of No. 5 continuous caster
Products:
Specialty steel
Amount in FY2006:
3.9 billion yen
Total investment:
8.5 billion yen
Construction period:
April 2004-August 2006
Kobe Works
Project:
Upgrading of Bar Mill to improve product quality and inspection
Products:
Specialty steel
Amount in FY2006:
1 billion yen
Total investment:
1 billion yen
Construction period:
November 2005-March 2007
Aluminum & Copper Segment
Moka Plant
Project:
Upgrading of No. 1 cold rolling mill to increase rolling speed
Products:
Aluminum sheet
Amount in FY2006:
700 million yen
Total investment:
1.4 billion yen
Construction period:
April 2005-February 2007
Moka Plants
Project:
Switchover to city gas
Products:
Aluminum flat products
Amount in FY2006:
800 million yen
Total investment:
800 million yen
Construction period:
April 2006-January 2007
Chofu Plant:
Project:
Upgrading of cold temper rolling mill
Products:
Copper sheet
Amount in FY2006:
300 million yen
Total investment:
1.8 billion yen
Construction period:
October 2005-April 2007
Reference Information
Capital investment in previous 10 years (in billions of yen)
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