Japan’s Kobe Steel Opening Wire Rod Plant in China
Japan’s Kobe Steel Opening Wire Rod Plant in China
Jason Sandefur
Tokyo-based Kobe Steel Ltd. established a 2.6 billion yen (US$22.9 million) joint venture called Kobe Special Steel Wire Products Co. Ltd. to process special steel wire rod in Pinghu, Zhejiang Province in China.
The venture, which includes participation by Shinsho Corp. (30%) and steel processors Osaka Seiko Co. Ltd. (10%) and Meihoku Kogyo Co. Ltd. (10%), will turn special steel wire rod into cold heading quality (CHQ) steel wire for use in high strength automotive nuts and bolts. The processed wire will be supplied to Japanese automotive parts manufacturers in China.
“Automobile production in China is anticipated to increase from the 7.28 million cars made in 2006 to over 10 million cars in 2010, owing to sharply rising economic development,” Kobe Steel stated. “Japanese auto parts makers have been moving to China and boosting production in that country” to meet growing demand for local sources of special steel wire rod for auto parts.
With 80 employees, the new company will have capacity of 2,100 metric tons per month, and is slated to start production in April 2009.
Kobe Steel officer Hiroyoshi Tsumura will serve as chairman of Kobe Special Steel Wire Products, with Kobe official Takashi Matsunaga serving as president.
Kobe Steel already operates production facilities in China. Kobe Wire Products processes polished bar for suspension springs and other products and CHQ wire for nuts and bolts, while Jiangyin Sugita Fasten Spring Wire Co. produces oil tempered wire for use in suspension springs.
Kobe Steel also has wire rod processing ventures in Thailand. Kobe CH Wire Co. processes CHQ wire for nuts and bolts and Mahajak Kyodo Co. processes polished bar for suspension springs. Web: kobelco.co.jp �2007/2008 FastenerNews.com
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