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July 18, 2006

    

Kobe Wire Products (Foshan) Plant Commences Volume Shipments

 

Kobe Wire Products (Foshan) Co., Ltd., which was established in November 2004 and is located in Guandong, China, has begun full operations and volume shipments. It is capitalized at 725 million and was launched to manufacture and sell processed secondary specialty steel wire rod products for automotive uses. Kobe Steel, Ltd. holds a 60% stake in the company, Metal One Corporation holds 25%, and Kyodo Shaft Co., Ltd. and Sugita Wire, Ltd. hold 7.5% each.

Wire rods, the raw material, are supplied from Kobe Steel's works in Japan. They are fabricated into cold finished steel bars and CHQ (cold heading quality) steel wire used for suspension springs, high-strength bolts and nuts for vehicles. They are delivered mainly to Japanese automotive parts manufacturers operating in China.

With a total of 1.8125 billion invested, the operation will have 15,000 tonnes of interim annual production capacity, which will steadily be increased as vehicle demand grows in China.

 
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