Kobelco Welding of Europe unveils facility in the Netherlands

TOKYO (June 11, 1996) -- Kobelco Welding of Europe B.V. formally unveiled in a 
dedication ceremony held today its production facility for welding materials in 
Heerlen, the Netherlands.  Kobelco Welding is a joint venture with Kobe Steel, Ltd. 
and other Japanese companies.  

Roughly 130 officials and guests attended the afternoon ceremony, including 
Heerlen Mayor J. Pleumeekers; representatives from the Embassy of Japan, 
Netherlands Foreign Investment Agency (NFIA) and Limburg Development
Company (LIOF); customers; and the Heerlen community.  From Kobe Steel, Mr. 
Hiroo Shimada, general manager of the Welding Division represent the company.

Kobelco Welding is Kobe Steel's first production unit in Europe and is Europe's 
biggest producer of flux-cored wire for welding stainless steel.  Kobelco Welding's 
products are being marketed throughout Europe to major user industries including 
shipbuilding, marine and offshore structure fabrication, construction machinery and 
chemical processing machinery. 

Construction of the 5,300 square-meter production facility on a 33,000 square 
meter site in an industrial park called De Beitel began in November 1994.  Kobe 
Steel invested roughly 17 million Dutch guilders (US$10 million) in the Heerlen 
plant located in Limburg, the southernmost province in the Netherlands. Completed 
in October 1995, the plant has a nominal production capacity of 800 metric tons per 
year.

Following performance testing, the plant began commercial operation in December 
1995 and is currently in full production.  Kobelco Welding also ships a portion of its 
products to Kobe Steel's customers in the United States.  

Kobe Steel decided to establish a production and marketing base in Europe to 
increase its presence and provide customers with high quality welding 
consumables.  The company choose Heerlen because of its central location and 
good infrastructure.  With Maastricht-Aachen Airport only 20 minutes away, 
marketing and technical people have quick access to customers.  Customers also 
benefit from quicker deliveries.  In an 800-kilometer radius from Heerlen, 
customers in Germany, France, England and other European countries can receive 
products within 48 hours after ordering.  Kobelco Welding also benefits from the 
highly skilled workforce in the Netherlands. 

Kobelco Welding employs 32 people.  Apart from three Japanese members, the 
rest of the employees have been hired locally.  The managing director of the 
company is Mr. Kinya Misaki. 

Kobelco Welding is 94.6% owned by the Kobe Steel group and the remaining 
5.4% is held by the Nissho Iwai group, a major Japanese trading company.  
Established in June 1994, the company is capitalized at 15,001,400 Dutch guilders 
(US$8.8 million). 

                                    # # #

For more information, please contact: 
Gary Tsuchida, Publicity Dept.
Tokyo, Japan
E-mail   www-admin@kobelco.co.jp
Tel  (03) 3218-6055
Fax (03) 5252-7961

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