| Kobe Steel, Ltd. and Infra, S.A. de C.V., a unit of Mexico's Infra Group, are collaborating to expand the marketing of KOBELCO welding materials in Central and South America. Plans call for marketing to begin from the second quarter this year. A business tie-up between the two companies enables Infra to sell Kobe's high quality flux cored welding wire. Kobe Steel's marketing subsidiary in the United States, Kobelco Welding of America Inc., will provide Infra and customers with product support and technical services. The use of flux cored wire is currently low in Central and South America as the market is still in an early phase. A potential market in the region is the shipbuilding industries in Columbia, Puerto Rico and other countries. The Infra Group is Mexico's leading manufacturer of welding equipment, welding consumables and gas. The combination of Kobe Steel's popular flux cored wire and Infra's gas and welding equipment is anticipated to stimulate considerable demand in Central and South America. Kobe Steel currently ships about 30 tons per month of welding consumables to the shipbuilding and chemical engineering industries. Through the tie-up, Kobe Steel estimates shipments to Central and South America will triple to 100 tons in three years. Flux cored welding wire is noted for its good bead appearance and reduced spattering, which contributes to improved welding quality and lower overall costs. It is widely used in structural fabrication, bridge building, automobile and industrial manufacturing, and shipbuilding. Demand for flux cored welding wire is expected to grow as semi-automatic and automatic welding becomes more widespread. In the North American market, the Kobe Steel Group will assist Infra in increasing the quality of its solid welding wire for carbon-dioxide gas welding. Kobelco Welding of America plans to introduce Japanese users in North America to Infra and support Infra in the marketing of their solid wire. Kobe Steel is Japan's leading producer of welding consumables and the third largest in the world. Overseas, Kobe Steel has production and marketing locations in China, Thailand, Singapore, Malaysia, Indonesia and the United States. In building its global business, the alliance with Infra will enable Kobe to extend its reach to South America. Infra Group About Kobelco Welding of America About Kobe Steel |
