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Kobe Steel to increase capital investments 77% in fiscal 2006
April 25, 2006
Most of the investments will be in the Iron & Steel segment and the Aluminum and Copper segment. The projects are focused on remodeling a blast furnace for the stable production of steel products and improving the manufacturing capabilities for "Only One" upper-end products to increase the competitiveness of the company. Other investments will cover labor-savings and necessary repairs and maintenance work.
Construction costs and outlays (parent only)
| (in billions of yen) | FY2005 (estimated) | FY2006 (planned) | % of change |
| Construction costs Iron & Steel only |
62 43 |
110 84 |
77% 95% |
| Outlays Iron & Steel only |
54 38 |
88 63 |
63% 66% |
| Depreciation Iron & Steel only |
52 35 |
57 41 |
FY2006 Investments by segment (parent only, construction cost basis)
| (in billions of yen) | FY2005 (estimated) | FY2006 (planned) |
| Iron & Steel | 43 | 84 |
| Aluminum & Copper | 10 | 14 |
| Others | 9 | 12 |
| Total | 62 | 110 |
Main projects
The main projects for fiscal 2006 are as follows:
Iron & Steel Segment
| Kakogawa Works | |
| Project: | Refurbishing of No. 2 blast furnace |
| Products: | Steel sheet, plate, wire rod |
| Amount in FY2006: | 35 billion yen |
| Total investment: | 40 billion yen |
| Construction period: | September 2004-March 2007 |
| Kobe Works | |
| Project: | New construction of No. 5 continuous caster |
| Products: | Specialty steel |
| Amount in FY2006: | 3.9 billion yen |
| Total investment: | 8.5 billion yen |
| Construction period: | April 2004-August 2006 |
| Kobe Works | |
| Project: | Upgrading of Bar Mill to improve product quality and inspection |
| Products: | Specialty steel |
| Amount in FY2006: | 1 billion yen |
| Total investment: | 1 billion yen |
| Construction period: | November 2005-March 2007 |
Aluminum & Copper Segment
| Moka Plant | |
| Project: | Upgrading of No. 1 cold rolling mill to increase rolling speed |
| Products: | Aluminum sheet |
| Amount in FY2006: | 700 million yen |
| Total investment: | 1.4 billion yen |
| Construction period: | April 2005-February 2007 |
| Moka Plants | |
| Project: | Switchover to city gas |
| Products: | Aluminum flat products |
| Amount in FY2006: | 800 million yen |
| Total investment: | 800 million yen |
| Construction period: | April 2006-January 2007 |
| Chofu Plant: | |
| Project: | Upgrading of cold temper rolling mill |
| Products: | Copper sheet |
| Amount in FY2006: | 300 million yen |
| Total investment: | 1.8 billion yen |
| Construction period: | October 2005-April 2007 |
Reference Information
Capital investment in previous 10 years (in billions of yen)
| Fiscal years | Construction costs | Outlays | Depreciation |
| 1996 | 66.0 | 76.0 | 76.8 |
| 1997 | 57.0 | 47.0 | 76.1 |
| 1998 | 77.0 | 69.0 | 74.1 |
| 1999 | 56.0 | 69.0 | 71.8 |
| 2000 | 57.0 | 40.0 | 69.2 |
| 2001 | 43.9 | 51.3 | 65.7 |
| 2002 | 24.0 | 25.0 | 61.4 |
| 2003 | 35.8 | 33.1 | 56.5 |
| 2004 | 46.2 | 35.3 | 54.8 |
| 2005 (estimated) | 62.0 | 54.0 | 52.0 |
| 2006 (planned) | 110.0 | 88.0 | 57.0 |
