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Kobe Steel’s wire rod processing venture in China to expand production capacity

November 10, 2015

TOKYO, November 10, 2015 — Kobe Steel, Ltd. and the other equity shareholders of Kobe Special Steel Wire Products (Pinghu) Co., Ltd. have agreed to expand the production capacity of their Chinese joint venture that processes special steel wire rod.

The other joint venture partners are Shinsho Corporation, Osaka Seiko Co., Ltd., Meihoku Kogyo Co., Ltd., Metal One Corporation and Kyodo Shaft Co., Ltd.

Kobe Special Steel Wire Products (or KSP) was established in 2007 to process steel wire rod into cold heading (CH) steel wire for supply to parts manufacturers. The wire is used to make automotive bolts, nuts and bearing products. Full-scale operations began in 2009.Kobe Steel provides 100 percent of the special steel wire rod used by KSP so that the same high-quality material available in Japan can be used to manufacture high-quality parts in China.

Automobile production in China continues to steadily rise, and KSP has become the largest supplier of CH wire to Japanese automotive parts manufacturers in China.

To meet the growing need for CH wire, KSP will invest about 1.3 billion yen to install additional pickling equipment, for a total of two units. Production capacity of special steel wire will increase from the current 3,500 metric tons per month to about 4,900 metric tons per month. The new pickling equipment is scheduled to start up in December 2016.

This investment will be KSP’s fourth capacity increase. Details follow below.

Capacity Expansion Plan

Investment amount:
About 1.3 billion yen
Details of investment:
Installation of pickling equipment
December 2016

Pickling Equipment

Current number of units:
After capacity increase:

Production capacity

Current capacity:
About 3,500 metric tons per month
After capacity increase:
About 4,900 metric tons per month

Profile of Kobe Special Steel Wire Products (Pinghu) Co, Ltd.

Takashi Goto (Senior Officer, Kobe Steel)
Hirofumi Tai (dispatched from Kobe Steel)
Manufacture and sale of CH steel wire and bearing steel wire
Pinghu, Zhejiang Province, China
1,775 million yen
Capital structure:
Kobe Steel, Ltd. 47%, Shinsho Corporation 25%, Osaka Seiko Co., Ltd. 10%, Meihoku Kogyo Co., Ltd. 10%, Metal One Corporation 5%, Kyodo Shaft Co., Ltd. 3%
117 (at end of March 2015)
November 2007
July 2009