April 24, 2003 - Kobe Steel's capital investment plan in fiscal 2003


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




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