Kobe Steel to Enhance Sand Casting Production Capacity at Daian Works’ Aluminum Casting & Forging Plant
Jul. 31, 2026
Kobe Steel, Ltd.
Kobe Steel, Ltd. has decided to make a capital investment to enhance the production capacity of the sand casting business at its Aluminum Casting & Forging Plant, Daian Works.
Our Company’s aluminum and magnesium sand castings are widely adopted by many customers, primarily in the commercial aircraft and defense sectors. The commercial aircraft sector is expected to see medium- to long-term market growth, fueled by a recovery in passenger demand, following its temporary decline during the COVID-19 pandemic. Additionally, growing concerns over economic security are driving greater demand to strengthen the domestic supply chain for aircraft components. Our Company plans to meet this increasing demand and respond to customers’ diverse requirements, while ensuring more stable product delivery, by not only expanding our production facilities for aluminum and magnesium sand castings, but also enhancing our quality and development capabilities through the introduction of technologies such as a sand mold 3D printer and an X-ray CT scanner.
This initiative has been certified by the Ministry of Economy, Trade and Industry (METI) as part of the Japanese government’s Supply Assurance Plan for Specified Critical Products (aircraft components) under the Economic Security Promotion Act (Act on the Promotion of Ensuring National Security through Integrated Implementation of Economic Measures). Accordingly, up to 50% of the investment amount will be subsidized.
Our Company strives to consistently meet the increasing demand for aluminum castings and forgings as well as titanium forgings from customers in the commercial aircraft and defense sectors, thereby contributing to the strengthening of the domestic supply chain.
The Kobe Steel Group (also known as the Kobelco Group) is advancing the transformation into an appealing company through its diverse technologies, products, and services, with a view to a world in which people, now and in the future, can fulfill their hopes and dreams while enjoying safe, secure, and prosperous lives.
Overview of Production Capacity Enhancement
- Investment details:
Capital investment (enhancement of welding, finishing, and other processes; introduction of a sand mold 3D printer and an X-ray CT scanner, etc.)
- Mass production start:
Scheduled for 2028
- Investment amount:
Approx. 2.07 billion yen
- Maximum subsidy amount:
Approx. 1.04 billion yen
Note: The subsidy amount may vary depending on the investment amount.
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