Kobe Steel Establishes New Clod Heading Quality Wire in China

Kobe Steel announced on Wednesday the firm established production and sales company for clod heading quality wire, Kobe Special Steel wire Products (Pinghu) Co., Ltd. with Japanese business house, Shinsho Corporation, and Japanese 2 major clod heading quality wire makers, Osaka Seiko and Meihoku Kogyo. Kobe Special Steel wire Products (Pinghu) starts the production of clod heading quality wire for bolt and nut from April 2009, which supplies to mainly Japanese automobile component makers in China. The production capacity is 2,100 tonnes per month in the first phase with the investment at about 2.6 billion yen. Kobe Special Steel wire Products (Pinghu) raises the selling volume to 1,700 tonne per month until fiscal 2011 at the ended of March 2012 and aims to restore profitability. Kobe Special Steel wire Products (Pinghu) is the third prosecution base of steel wire in China and the fifth in Asia as Kobe Steel.Kobe Special Steel wire Products (Pinghu)’s capital found is 1.2 billion yen with 50% of Kobe Steel, 30% of Shinsho 10% of Osaka Seiko and 10% of Meihoku Kogyo. The firm was established in November in Pinghu city, Zhejiang. Kobe Special Steel wire Products (Pinghu) has pickling line, 2 STC furnaces and 4 drawing equipments, which purchases wire rod from Kobe Steel and produces clod heading quality wire for bolt and nut used automobile. The employees are about 80 peoples including 7 Japanese. The firm will expand the output to 5,000 tonnes per month.Chinese car production is expected to increase to 10 million cars by 40% in 2010 compared with 2006. Kobe Steel decided the establishment of Kobe Special Steel wire Products (Pinghu) when Japanese component makers are expanding business in East China.