Kobe Steel to Expand High Grade Bar, Wire Rod Output by 6% in F2008

Kobe Steel plans to increase the special steel bar and wire rod output by 6% to 2.25 million tonnes in fiscal 2008 started April from fiscal 2007. The output will increase by 11% or 250,000 tonnes during 3-year plan from fiscal 2006-2008. The firm tries to improve the high grade products business in volume and quality to meet growing demand mainly for automobile. Kobe Steel, which has world top share for materials of engine valve spring and suspension spring, tries to expand the output capacity at wire rod and bar mills in Kakogawa and Kobe works under the 3-year plan. The firm now completed the optical production system with 18 millimeters or more diameter products at Kobe’s bar mill, small lot products at Kobe’s wire rod mill and mass production at Kakogawa. The firm tries to shift the production of large lot products to Kakogawa’s wire rod mill. Through the optimization, the firm increases the production to 2.55 million tonnes in fiscal 2008 from 2.4 million tonnes in 2007. Japanese manufacturers including automakers and construction machinery makers increase the special steel bar and wire rod consumption. Japanese major steel makers try to expand the output of high grade products to meet the higher demand.