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Relations with Customers and Business Partners

To maintain the trust of our customers and business partners, and to ensure that we supply products and services that provide complete customer satisfaction, the Kobe Steel Group has achieved widespread certification of the ISO 9000 international standard for quality management systems and implements thorough quality control. We are committed to quickly responding to the diverse needs of our customers. Development and Supply of Reliable, Superior Products and Services The Kobe Steel Group develops and supplies reliable, superior products that meet the needs of our customers. Kobe Steel Facilities Compliant with the ISO 9000 Series Facility Name Date of Compliance Kakogawa Works Wire Rod Mill December 1996 Plate Mill June 1995 Sheet Mills November 1997 Titanium Plant October 1994 Kobe Works   March 1997 Takasago Works Steel Casting and Forging Plant January 1994 Titanium Plant December 1999 Steel Powder Plant January 1998 Machinery Plant September 1992 Equipment Plant March 1996 Ibaraki Plant   March 1998 Moka Plant   December 1998 Chofu Works   September 1999 Daian Plant   September 1997 Harima Plant Standard Compressor Plant April 1999 Kobe Steel Group Companies Compliant with the ISO9000 Series Company Name Facility Date of Compliance Kobelco Eagle Marine Engineering Co., Ltd. All March 1994 Shinko Engineering & Maintenance Co., Ltd. All November 1998 Shinko Wire Company, Ltd. Amagasaki Plant July 2000 Onoe Plant February 1997 Ceratechno Co., Ltd. Headquarters, Akashi Plant April 2005 Bizen Plant April 2005 Nippon Koshuha Steel Co., Ltd. Toyama Works January 1996 Kansai Coke and Chemicals Co., Ltd. Kakogawa Plant March 2005 Sakai Steel Sheets Works, Ltd. All (titanium products only) April 2005 Sanwa Tekko Co., Ltd. Inuyama Plant June 2002 Shinko Special Tube Co., Ltd. Chofu-Kita Plant November 1992 Shinko Bolt, Ltd. Headquarters and all branches December 2002 Tesac Wirerope Co., Ltd. All April 1999 Shinko Actec Co., Ltd. Hidaka Plant September 2004 Shinko Welding Service Co., Ltd. Headquarters December 2005 Kobelco & Materials Copper Tube, Ltd. Hatano Plant April 1998 Thailand Plant November 2000 Malaysia Plant September 1996 Sun Aluminium Industries, Ltd. All September 1999 Shinko-North Co., Ltd. All June 1999 Shinko Metal Products Co., Ltd. All April 1995 Shinko Leadmikk Co., Ltd. All April 2000 Niko-Aluminium Industries, Ltd. One dept. at Moka Plant December 1998 Kobelco Eco-Solutions Co., Ltd. Headquarters February 1997 Harima Plant October 1996 Technical Research Center February 1997 Shinko Inspection & Service Co., Ltd. Headquarters December 2005 Shinko Engineering Co., Ltd. Main plant, all branches December 1995 Shinko Electric Co., Ltd. Toyohashi Plant July 1995 Ise Plant June 1995 Kobelco Cranes Co., Ltd. Okubo Plant December 1998 Kobelco Construction Machinery Co., Ltd. Hiroshima Factory February 1998 Kobelco Research Institute, Inc. Applied Chemistry Division January 2003 Material Evaluation Division Electronics Division Engineering Mechanics Division LEO Division Kanmon Laboratories Sputtering Target Division February 2003 Shinko JFE Industrial Co., Ltd. Main Plant August 1998 Genesis Technology Inc. Nishiwaki Plant November 1995 Tokorozawa Plant February 1997 Kyushu Plant May 2002 Japan Superconductor Technology, Inc. Seishin Plant July 2005 International QC Exchange Conference Dedicated to Worldwide Consistency in Product Quality On October 11-12, 2007, the Welding Company held its 11th annual International QC Exchange Conference at its Ibaraki Plant. With a global supply network that includes four centers in Japan and nine abroad, we have been holding these conferences every year since 1997 to ensure worldwide consistency in our product quality. Last year, about 190 people participated, including those from six countries outside Japan. Presentations were given concerning 11 case studies, with simultaneous interpretation that allowed all participants to learn about common challenges in maintaining manufacturing quality. Question and answer sessions were also held. Under the slogan, "Talking, Acting, and Experiencing Together," it was an event that encouraged communication, with participants engaging in animated conversation even during breaks. We are further strengthening our supply system both in Japan and abroad to better serve growing demand for welding consumables. With all of our production centers called upon to improve their productivity, the conference provided an excellent opportunity to deepen our sense of solidarity. International QC Exchange Conference Participating Group Companies South Korea Kobe Welding of Korea Co., Ltd. Thailand Thai-Kobe Welding Co., Ltd. Kobe MIG Wire (Thailand) Co., Ltd. Indonesia P.T. Intan Pertiwi Indutri P.T. Netherlands Kobelco Welding of Europe B.V. China Kobe Welding of Tangshan Co., Ltd. Singapore Kobe Welding (Singapore) Pte. Ltd. Japan Kobe Welding Wire Co., Ltd. Shinko Taseto Co., Ltd. Shinko Welding Service Co., Ltd. Annual Quality Circle Conference Held by the Aluminum and Copper Company The Aluminum and Copper Company holds a QC Conference every year. In FY2007, the conference was held at the Moka Plant. Under the title, "Rising to the Challenge of Zero Defects, Product Perfection, and Being the Best in Our Field," presentations were made on five case studies: two at the Moka Plant, two at the Chofu Works, and one at the Daian Plant. A lively question-and-answer session followed, with approximately 120 participants learning successful pointers from each case discussed. The Aluminum and Copper Company manufactures rolled aluminum sheet and plate at its Moka Plant; extruded aluminum and rolled copper sheet at its Chofu Works; and aluminum and magnesium castings and forgings and machined products at its Daian Plant. Because each plant uses different manufacturing technologies, the conference was a true interdisciplinary exchange. Annual quality circle conference at Moka Plant Examples of QC Activities of Kobe Steel Group Companies Company Activity Shinko Engineering & Maintenance Co., Ltd. Under the Electricity Utilities Industry Law (for thermal power), obtained approval from Japanese and Chinese boiler pressure vessel manufacturers and Korean high-pressure gas container manufacturers. Implemented customer satisfaction surveys to fine-tune services to match customer needs. Kobe Special Tube Co., Ltd. Obtained certification from JIS, TUV, ship classification societies and other organizations, while conducting customer satisfaction surveys. Fed the survey results back to relevant departments within the company. Tesac Wirerope Co., Ltd. Obtained certification from NK, LR, NV and other Japanese ship classification societies, as well as from overseas organizations such as API (American Petroleum Institute) and Saudi Aramco. Also implemented customer satisfaction surveys to fine-tune services to meet customer needs. JFE Welding Rod Co., Ltd. Provided customer service through technical services, guidance and training courses on welding technology. Kobelco & Materials Copper Tube, Ltd. Obtained JIS certification for externally clad copper tube and seamless copper/copper-alloy tube, and implemented customer satisfaction surveys. Kobe Leadmikk, Ltd (CHECK) Held regular meetings to discuss product quality with customers, and implemented customer satisfaction surveys to fine-tune services to meet customer needs. Kobelco Eco-Solutions Co., Ltd. Received certification for ASME U Stamp and ISO 17025. Obtained MLAP (Specified Measurement Laboratory Accreditation Program) certification. Held seminars for customers three times a year focusing on the maintenance of processing equipment. Shinko Engineering Co., Ltd. Controlled product quality through an integrated system covering all phases including development, design, casting, machining, welding, assembly, painting and testing. Actively gathered customer information to fine-tune services to meet customer needs. Kobelco Cranes Co., Ltd. Maintained engineers in eight locations in Japan who provide customers with service and dealers with technical support. Also, maintained engineers at overseas locations and at Okubo Plant to provide fine-tuned services that meet overseas customers' needs. Shinko Electric Co., Ltd. Obtained certification for JG-approved plant and NK-approved plant. Used nationwide sales network to provide customer service. Kobelco Research Institute, Inc. and Shinko Fab Tech, Ltd. Win the Monozukuri Japan Prize At the second (FY2007) award ceremony of the Monozukuri Japan Prize, Kobelco Researrch Institute Inc. and Shinko Fab Tech, Ltd., both Kobe Steel Group companies, were awarded prizes for excellence in the Manufacturing and Production Processes Division in the field of Monozukuri That Supports Industry and Society. Kobelco Research Institute Inc. won its prize for establishing a manufacturing process for aluminum alloy target material that employs a new spray-forming technique. Target material is essential in the manufacture of LCD panels. The Institute has succeeded in developing a proprietary spray-forming technology which enables the production of aluminum-alloy target material of a high quality unprecedented in the world, characterized by an extremely fine and uniform structure. Shinko Fab Tech, Ltd. was awarded its prize for developing high-quality aluminum alloy melting and casting technologies for use in making the central components of copiers and printers. High-quality aluminum alloy is used to make such crucial components as the light-sensitive drums and polygon mirrors at the heart of copiers and printers. By developing improved, proprietary melting technology, Shinko Fab Tech is able to efficiently prevent contamination by microscopic oxides measuring as small as two microns in diameter. In addition, the company has developed melting and casting technologies that make it possible to control the generation of such oxides. The technologies described above have contributed greatly to improving Japan's international competitiveness in the global market for LCD panels, copiers and printers. Kobelco Research Institute, Inc. Shinko Fab Tech, Ltd. * The biannual Monozukuri Japan Prize was established in 2005 by four Japanese ministries: Ministry of Economy, Trade and Industry; Ministry of Education, Culture, Sports, Science and Technology; Ministry of Health, Labour and Welfare; and Ministry of Land, Infrastructure and Transport. Its purpose is to encourage the continuation and development of "monozukuri" (skilled manufacturing), which has long supported Japanese industry and culture; provide incentives for people who support monozukuri; and widely disseminate knowledge about monozukuri to the public at large. World's First Pierced Bumper System Made by Electromagnetic Forming Kobe Steel has pioneered the world's first pierced aluminum bumper system, featuring an aluminum bumper and stays made into a single unit through electromagnetic forming. Until now, stays have been welded to the bumper beam. With this new system, the stays are pushed through the bumper beam and the pipe ends are widened through electromagnetic forming. Because welding is no longer necessary, this innovative technique reduces component weight while lowering manufacturing costs. Kobe Steel announced the development of the new bumper system in January 2007. This technology makes lighter, more economical bumpers possible while improving shock absorption capabilities. Pierced aluminum bumper system. Overseas Development The Kobe Steel Group follows a policy of meeting local needs locally. This policy has formed the basis of our active development of overseas production facilities that began in the 1960s. Also, in meeting the demands of our customers, we continue to expand and strengthen the plant capacities of our overseas locations and pursue the development of technologies and products that harmonize with the regions and countries concerned. "Vehicle Side Structure Concept using Ultra High Strength Steel Sheet and Rollforming Technology" Wins the Sydney H. Melbourne Award in FY2006 The technical paper, "Vehicle Side Structure Concept using Ultra High Strength Steel Sheet and Rollforming Technology," which was produced jointly by Kobe Steel and voestalpine Automotive, Inc. of Australia, was awarded the 2006 Sydney H. Melbourne Award for Excellence in the Advancement of Automotive Steel Sheet at a ceremony held on April 17, 2007 in Detroit, Michigan. The technology described in the paper focuses on rollforming ultra high strength steel sheet (UHSS) with tensile strengths of 1,180MPa to 1,470MPa to make components for the side structures of automobiles. The resulting components passed the side crash tests conducted by the Insurance Institute for Highway Safety (IIHS) while contributing to lighter vehicle weight. Further work is being done to commercialize this new technology. * The Sydney H. Melbourne Award was established in 1997 by the Society of Automotive Engineers (SAE) and the American Iron and Steel Institute (AISI) in hour of the late Sydney H. Melbourne, a director of the Canadian steel company Dofasco, Inc., who was actively involved in enhancing relationships between the steel and automotive industries. PRO-TEC Coating Company Wins Malcolm Baldridge National Quality Award in U.S. PRO-TEC Coating Company, a 50/50 joint venture between Kobe Steel and United States Steel Corporation, was awarded the prestigious Malcolm Baldridge National Quality Award* in the U.S. in November 2007. The award is based on seven criteria for excellence: leadership; strategic planning; customer and market focus; measurement, analysis and knowledge management; human resource focus; process management; and business results. In receiving the award, PRO-TEC president Paul Worstell said: "This award is a tribute to our dedicated PRO-TEC associates and to our parent organizations, United States Steel Corporation and Kobe Steel, whose traditions of quality and constant improvement are the foundation for our success at PRO-TEC." PRO-TEC representatives receive the Baldridge Award from President George W. Bush. They include Eric Franks, Manager of Technology & QA (at left); Paul Worstell, President (fourth from left); and Nori Nakajima, Vice-President (sixth from left). * The Malcolm Baldridge National Quality Award honors companies and educational/medical institutions that display excellence in management and customer service. Its aim is to publicize their achievements so that managers at other companies and organizations can share their expertise. Established in 1988, the award was named after Malcolm Baldridge, who was U.S. Secretary of Commerce at the time. Creating a Processing System for Commissioned High-quality Hard-Film Coating Operations Kobe Steel announced that it would make a full-scale entry into the hard-film coating market by accepting commissions at two production centers (one in Japan and one in the U.S.) that use physical vapor deposition (PVD) coating technology. Plans call for annual sales in this field to be expanded to about \2 billion by 2012. To reach this goal, we have founded a new production center aimed at the U.S. market called KOBELCO Advanced Coating (America) Inc. in Buffalo Grove, Illinois, which caters primarily to machine tool and die manufacturers. In Japan, the Takasago Coating Center receives orders from manufacturers of machine tools, dies, machinery and automotive parts. PVD coating extends the service life (wear resistance, durability) of machine tools, dies, and sliding parts in machinery and automobiles by two to ten times compared with untreated counterparts. While concentrating on the research and development of equipment and new films, we will expand the application fields for PVD technology. Coated cutting tools Coated dies Regulations for Procurement Operations Kobe Steel has adopted regulations for procurement operations that govern basic and necessary items related to procurement, including planning and implementation; contracts for the purchasing of fuel, raw materials and machinery; outsourced processing; contracts for commissioned labor; and other activities. These regulations stipulate that "when engaging in procurement, full consideration must be given to social conditions and demands, environmental protection, resource conservation, and other concerns." They are thus formulated with the aim of promoting a responsible approach to the environment, strengthening compliance, and responding in a positive way to the needs of society. In accordance with these basic principles, we are committed to using materials and products that impose less of a burden on the environment (recycled items, etc.), as long as there is no negative impact on our product quality. Responsible Exporting Kobe Steel is committed to appropriate and responsible exporting and has formulated company guidelines governing the management of secure trade. In accordance with these guidelines, we practice strict internal control to ensure that we conform with all regulations regarding the export of products that might be used for military purposes. As part of these efforts, we check customer applications in accordance with the Catch-All Control System* adopted by Japan in April 2002. This proactive stance toward security is being disseminated from Kobe Steel itself to all members of the Kobe Steel Group so that each company can implement appropriate export policies as part of a comprehensive trade security system. Similarly, we are educating Group members concerning the RoHS (Restriction of Hazardous Substances) Directive adopted by the EU in July 2006 and taking steps to ensure conformity. While providing our employees with e-learning and other educational opportunities to increase their knowledge level, we continue our efforts to nurture an ongoing sensitivity to changes in international conditions. * Japan's Catch-All Control System restricts the export of any items that are known to be usable in the development of weapons of mass destruction, etc., or any items concerning which notification has been received from the Japanese government.