Kobe Steel and Kirloskar Pneumatic Sign MOU to Develop Business Opportunities in the Non-General Purpose Compressor Business

Oct. 27, 2026

Kobe Steel, Ltd.

Kobe Steel, Ltd. has signed a memorandum of understanding (MOU) with Kirloskar Pneumatic Company Limited (KPCL) to explore strategic cooperation in the non-general purpose compressor business in India.

India continues to experience strong economic growth, with demand expanding particularly in the consumer goods and energy sectors, driven by population growth and rising income levels. In the oil and gas and petrochemical sectors, large-scale investment projects led by both the public and private sectors are underway, and the market is expected to maintain steady growth.

In India, multiple large-scale projects are planned over the next several years in the oil, gas, and petrochemical sectors—key areas of focus in our Company’s non-general purpose compressor business—as well as in carbon neutrality fields such as hydrogen and ammonia. Capturing demand from the early stages of these projects is an important initiative not only to enhance our presence but also to support the expansion of the non-general purpose compressor business, including future opportunities for aftermarket services, maintenance, and equipment replacement.

KPCL is engaged in the Group’s compressor and refrigeration businesses, with a broad customer base spanning state-owned enterprises and major private-sector companies. It possesses project management capabilities that encompass everything from design, procurement, manufacturing, and assembly of compressor units to the installation of peripheral equipment, as well as sales and onsite handover of compressors. KPCL’s deeply rooted business foundation in the Indian market will be a significant advantage in responding to market demands that prioritize local procurement and manufacturing.

Meanwhile, Kobe Steel has developed extensive technological expertise and a robust product portfolio over many years in the non-general purpose compressor field, including reciprocating, centrifugal, and screw compressors.

Looking ahead, we will explore strategic collaboration to strengthen our business foundation and competitiveness in the growing Indian market by leveraging our technologies and product capabilities in non-general purpose compressors, alongside the customer base, sales network, and local procurement and production capabilities developed by the Kirloskar Group and KPCL in India. Through this collaboration, we aim to expand business primarily in the oil, gas, and petrochemical sectors, while also pursuing new business opportunities in carbon neutrality fields.

KPCL, a core company within the Kirloskar Group—one of India’s leading industrial groups founded in 1888—is engaged in the Group’s compressor and refrigeration businesses. The company operates across a wide range of industries, including oil and gas, petrochemicals, steel, chemicals, and power generation, backed by a strong customer base and sales network that spans both state-owned enterprises and major private-sector companies in India. In addition, KPCL has developed an integrated framework covering design, engineering, procurement, manufacturing, packaging, and aftermarket services, earning strong recognition as a compressor manufacturer and system integrator in the Indian market.