The information on this Web site is presented "as is." Product availability, organization, and other content may differ from the time the information was originally posted. Changes may take place without notice.
Kobe Steel establishes steel processing venture in eastern China
December 12, 2007
TOKYO, December 12, 2007 - Kobe Steel, Ltd. announces that it has established
a joint venture called Kobe Special Steel Wire Products (Pinghu) Co., Ltd. to
process special steel wire rod in Pinghu, Zhejiang Province in China.
The joint venture will turn special steel wire rod into cold heading quality
(CHQ) steel wire for use in high strength nuts and bolts, which are critical
parts in automobiles. The processed wire will be supplied to Japanese automotive
parts manufacturers in China. Plans call for the new company, which will start
production in April 2009, to have a production capacity of 2,100 metric tons
per month.
Capitalized at 1.2 billion yen, Kobe Special Steel Wire Products (Pinghu) is
50% held by Kobe Steel and 30% by trading firm Shinsho Corporation. Japanese
secondary steel processors Osaka Seiko Co., Ltd. and Meihoku Kogyo Co., Ltd.
each hold a 10% share. Total investments are anticipated to be about 2.6 billion
yen. The joint venture, established in November 2007, will employ approximately
80 people. The chairman is Hiroyoshi Tsumura, an officer at Kobe Steel. The president
is Takashi Matsunaga, deputy general manager of the Planning and Administration
Department in the Iron and Steel Sector at Kobe Steel.
Automobile production in China is anticipated to increase from the 7.28 million
cars made in 2006 to over 10 million cars in 2010, owing to sharply rising economic
development. Japanese auto parts makers have been moving to China and boosting
production in that country. Consequently, the need for local sources of special
steel wire rod for auto parts has been growing rapidly. Kobe Special Steel Wire
Products (Pinghu) will further strengthen Kobe Steel's supply of special steel
wire rod products to meet the growing demand from Japanese automotive transplants
in China.
Kobe Steel's special steel wire rod, widely used in the automotive industry,
is one of the company's upper-end "Only One" Products-products in which it
excels. The company is renown in the industry for the high quality of its value-added
wire rod products.
To strengthen its supply of high-grade steel, Kobe Steel has been actively undertaking
capital investments. Last year, the company's new No. 5 continuous caster went
into operation at Kobe Works, the main production facility that produces special
steel wire rod. Currently being remodeled is the No. 3 blast furnace, also at
Kobe Works. As a part of its overseas strategy for China and Asia, Kobe Steel
is positioning its Kobe and Kakogawa works as production bases for its special
steel wire rod.
Kobe Steel is aiming to improve customer service by building a flexible, efficient
supply network overseas. The company already has wire rod processing ventures
in Thailand. Kobe CH Wire (Thailand) Co., Ltd. processes CHQ wire for nuts and
bolts and Mahajak Kyodo Co., Ltd. processes polished bar for suspension springs
and other products.
In southern China, Kobe Wire Products (Foshan) Co., Ltd. processes polished bar
for suspension springs and other products and CHQ wire for nuts and bolts, while
in eastern China, Jiangyin Sugita Fasten Spring Wire Co., Ltd. produces oil tempered
wire for use in suspension springs. Both companies are currently in operation.
Profile of Other Equity Share Partners
Shinsho Corporation
Location:
Osaka
President:
Tsuguto Moriwaki
Founded:
November 1946
Capital
5.6 billion yen
Sales:
581.9 billion yen (nonconsolidated)
642.1 billion yen (consolidated) (year ended March 2007)
Back to Top
RSS Feeds