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Kobe Steel plans capital investments of 92 billion yen in fiscal 2008
April 25, 2008
TOKYO, April 25, 2008 - Kobe Steel, Ltd. plans capital investments of 92 billion yen in fiscal 2008,
ending March 31, 2009.
Kobe Steel will carry out projects to improve its line-up of ."Only One" upper-end products and
upgrade its manufacturing capabilities to increase the competitiveness of the company.
Most of the investments are in the Iron & Steel segment. At the Kakogawa Works, the company plans to increase sintering
capacity. Kobe Steel will also increase the production capacity at the Takasago
Works' Steel Casting and Forging Plant, which makes crankshafts for large ships.
An environment-related investment is the installation of denitration equipment
at the sintering plant in the Kakogawa Works.
Capital investments in fiscal 2008 will be less than the 114.6 billion yen spent in fiscal 2007. Much of the higher capital expenditure last year went to refurbishing and rebuilding two blast furnaces, one at the Kakogawa Works and the other at the Kobe Works.
Construction costs and outlays (parent only)
(in billions of yen)
FY2007
FY2008 (planned)
% of change
Construction costs Iron & Steel only
114.6 94.0
92.0 69.0
(20%)
(27%)
Outlays Iron & Steel only
112.4
85.8
110.0
88.0
(2%)
3%
Depreciation Iron & Steel only
76.4
57.7
94.0 67.0
Notes: Iron & Steel segment figures are a subset of each category.
Outlays may include payments for work completed in a previous fiscal year.
Investments by segment (parent only, construction cost basis)
(in billions of yen)
FY2007
FY2008 (planned)
Iron & Steel
94.0
69.0
Aluminum & Copper
12.4
12.0
Others
8.2
11.0
Total
114.6
92.0
Main projects for fiscal 2008:
Iron & Steel Segment
Kakogawa Works
Project:
Increasing sintering capacity
Products:
Steel sheet, plate, wire rod, etc.
Amount in FY2007:
2.8 billion yen
Total investment:
2.8 billion yen
Construction period:
:April 2007
Kakogawa Works
Project:
Installation of denitration equipment at the sintering
plant
Products:
Steel sheet, plate, wire rod, etc.
Amount in FY2007:
3.3 billion yen
Total investment:
15.0 billion yen
Construction period:
:December 2007-March 2010
Takasago Works:
Project:
Increasing production capacity of steel castings and
forgings
Products:
Marine crankshafts
Amount in FY2007:
2.5 billion yen
Total investment:
30.0 billion yen
Construction period
:July 2008 - March 2010
Previous Major Capital Investment Projects
Iron & Steel segment
Facility
Project
Products
Amount*
Construction Period
Kakogawa Works
New vacuum degassing equipment and desulfurization equipment
High strength steel sheet, specialty steel, etc.
5.0
Sept. 2003 to Oct. 2004
Kobe Works
New construction of No. 5 continuous bloom caster
High quality specialty
steel
8.5
Apr. 2004 to Aug. 2006
Kobe Works
Upgrading of bar mill to improve product quality and inspection
High
quality specialty steel
1.0
Nov. 2005 to Mar. 2007
Kakogawa Works
Refurbishment
of No. 2 blast furnace
Steel sheet, plate, wire rod, etc.
40.0
Sept. 2004 to
May 2007
Kobe Works
Rebuilding of No. 3 blast furnace
High quality specialty steel
10.0
Nov. 2007 to Dec. 2007
*In billions of yen
Aluminum & Copper segment
Daian Plant
Installation of No. 4 mechanical forging press
Aluminum forgings
for suspensions, etc.
1.0
Apr. 2004 to Sept.2004
Moka Plant
Replacement of motor
at hot strip finishing mill
Aluminum sheet (for automotive panel material, bottle
can stock, etc.)
0.7
Apr. 2004 to Jan. 2005
Moka Plant
Remodeling of No. 1 cold rolling mill to increase rolling speed
Aluminum
sheet
1.4
Apr. 2005 to Feb. 2007
Reference
Capital investments in previous years (in billions of yen)
Fiscal years
Construction costs
Outlays
Depreciation
1999
56.0
69.0
71.8
2000
57.0
40.0
69.2
2001
43.9
51.3
65.7
2002
24.0
25.0
61.4
2003
35.8
33.1
56.5
2004
46.2
35.3
54.8
2005
58.5
54.1
51.9
2006
96.2
76.3
56.0
2007
114.6
100.0
76.4
2008 (planned)
92.0
110.0
94.0
Note: The highest amount of capital investment in the past 20 years was 186
billion yen in fiscal 1991.
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