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Kobe Steel to increase capital investments 15% in fiscal 2007
April 24, 2007
Most of the investments are in the Iron & Steel segment and the Aluminum and Copper segment to improve the manufacturing capabilities of "Only One"upper-end products that increase the competitiveness of the company. For the stable production of steel products, Kakogawa Works will complete the refurbishment of its No. 2 blast furnace, while Kobe Works will reline its blast furnace. In the Aluminum and Copper segment, work will continue at the Chofu Plant on the upgrade of the cold temper rolling mill and installation of a new plating line.
In addition to environment-related investments, other work includes modernizing and necessary repairs.
Construction costs and outlays (parent only)
| (in billions of yen) | FY2006 (estimated) | FY2007 (planned) | % of change |
| Construction costs Iron & Steel only |
96 70 |
110 84 |
15% 20% |
| Outlays Iron & Steel only |
76 52 |
100 76 |
32% 46% |
| Depreciation Iron & Steel only |
56 40 |
81 59 |
Depreciation in fiscal 2007 includes the effect of a change in the depreciation method (an increase of 13 billion yen, of which 10 billion yen is from the Iron & Steel segment) due to a revision in the tax system.
Investments by segment (parent only, construction cost basis)
| (in billions of yen) | FY2006 (estimated) | FY2007 (planned) |
| Iron & Steel | 70 | 84 |
| Aluminum & Copper | 14 | 15 |
| Others | 12 | 11 |
| Total | 96 | 110 |
Main projects
The main projects for fiscal 2007 are as follows:
Iron & Steel Segment
| Kakogawa Works | |
| Project: | Refurbishing of No. 2 blast furnace |
| Products: | Steel sheet, plate, wire rod |
| Amount in FY2007: | 12 billion yen |
| Total investment: | 40 billion yen |
| Construction period: | September 2004-March 2007 |
| Kobe Works | |
| Project: | Relining of the No. 3 blast furnace |
| Products: | High quality specialty steel |
| Amount in FY2007: | 10 billion yen |
| Total investment: | 10 billion yen |
| Construction period: | November ? December 2007 |
Aluminum & Copper Segment
| Chofu Plant: | |
| Project: | Upgrading of cold temper rolling mill |
| Products: | Copper sheet |
| Amount in FY2007: | 1.5 billion yen |
| Total investment: | 1.8 billion yen |
| Construction period: | October 2005-April 2007 |
| Chofu Plant: | |
| Project: | Installation of new plating line |
| Products: | Copper sheet |
| Amount in FY2007: | 700 million yen |
| Total investment: | 700 million yen |
| Construction period: | April 2006-June 2007 |
Reference Information
Capital investment in previous 10 years (in billions of yen)
| Fiscal years | Construction costs | Outlays | Depreciation |
| 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 | 58.5 | 54.1 | 51.9 |
| 2006 (estimated) | 96.0 | 76.0 | 56.0 |
| 2007 (planned) | 110.0 | 100.0 | 81.0 |
*The highest capital expenditure in the past 20 years was 186 billion yen in fiscal 1991.
