TOKYO (August 29, 1997) -- Kobe Steel, Ltd. announced that it submitted a bid today 
to The Kansai Electric Power Co., Inc. to supply it with electricity from 2004. 

Kobe Steel plans to construct a second coal-burning power plant with a capacity of 
700,000 kilowatts of electricity at Kobe Works in Kobe, western Japan. When 
operational in April 2004, it will supply 659,000 kilowatts to Kansai Electric.

In January 1997, Kobe Steel was awarded a contract by Kansai Electric to supply 
electricity from April 2002.  The two power plants will have a combined capacity of 1.4 
million kilowatts.  Power generation is one aspect of the reconstruction of Kobe Works.  
The project is also anticipated to contribute to new business development through 
utilizing the infrastructure of the Works and its know-how. 

State-of-the-art equipment that meets Japan's highest environmental standards will 
be installed, and some existing equipment and facilities will be disposed.  These steps 
will result in a clean, new Kobe Works in harmony with the region. 

The project is anticipated to contribute to the reconstruction of the area by creating 
jobs, stabilizing employment and promoting capital investments.  Waste heat from the 
power plants will be recycled for use in community facilities as a further contribution to 
the community.  Kobe Steel's plan to supply electricity is aimed at turning Kobe into a 
stronger, disaster-resistant city by diversifying its sources of supply.

This project, the Kobe-Nadahama Energy and Community Plan, has been designated a 
New Industrial Structure Formation Project of the Special Reconstruction Projects by the 
Headquarters for Reconstruction of the Hanshin-Awaji Area, which is under the Prime 
Minister's Office.  Centered on Kobe Works' power generation business, the plan includes 
waste heat recovery and contribution to the community.  

Media Contact: 
Gary Tsuchida
Tokyo, Japan
tel (03) 3218-6055
fax (03) 5252-7961
e-mail  www-admin@kobelco.co.jp

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