TOKYO (April 24, 2003) – Kobe Steel, Ltd. plans capital investment of 31 billion yen in fiscal 2003, 29% more than the estimated 24 billion yen in fiscal 2002. Investments will be mainly in the Iron & Steel segment on improving production technology. Other investments will be in labor-savings and repairs and facility maintenance. An ongoing project is the construction of a second IPP power plant at Kobe Works. However, capital investment is funded through project financing arranged by subsidiary Kobe Shinko Power Inc., the operating company for the IPP business, and is therefore separate from Kobe Steel's capital investment plan. 1. Construction costs and outlays
|
(in billions of yen) |
FY2002 |
FY2003 |
% of change |
|
(estimated) |
(planned) |
|
|
Construction costs |
24.0 |
31.0 |
29% |
Iron & Steel only |
15.0 |
21.0 |
40% |
|
Outlays |
25.0 |
31.0 |
24% |
Iron & Steel only |
15.0 |
21.0 |
40% |
|
Depreciation |
61.0 |
57.0 |
|
Iron & Steel only |
42.0 |
38.0 |
|
|
Notes: Iron & Steel figures form a subset of each category. Figures in parentheses denote decreases. 2. Investments by Segment
|
Construction Costs (in billions of yen) |
|
Iron & Steel |
21.0 |
Aluminum & Copper |
6.0 |
Others |
4.0 |
Total |
31.0 |
3. Major Investments
(in billions of yen) |
Amount in FY2003 |
Total cost |
Construction Period |
|
Kakogawa Works |
|
|
|
Revamping of No. 3 continuous caster |
1.6 |
3.0 |
Dec.
'01 – Apr. '03 |
(Product: high strength steel sheet) |
|
|
|
|
Revamping of pickling equipment at |
|
|
|
continuous annealing line |
0.7 |
0.7 |
Mar. – Nov. 2003 |
(Product: high strength steel sheet) |
|
|
|
|
Remodeling flaw detection line at |
|
|
|
blooming mill |
0.5 |
0.5 |
Apr. – Nov. 2003 |
(Product: specialty steel wire rod) |
|
|
|
|
Additional Information on IPP Project @
(in billions of yen) |
FY2002 |
FY2003 |
|
(estimated) |
(planned) |
|
Construction costs |
10.0 |
56.0 |
|
Outlays |
9.4 |
62.0 |
|