Kobe Steel to Ship Wire Rod for Garphyttan’s Spring Wire Plant in China

Swedish automobile spring wire maker, Garphyttan Wire, which is part of Sweden based major automobile part maker, Haldex Group, launched new Chinese plant in Suzhou to serve transplants of European and US automakers. Kobe Steel started the sample shipment of spring wire rod to the plant. Kobe Steel will supply the material as early as official approval. Garphyttan Wire’s Chinese plant has 2,500 tonnes of annual output capacity. Kobe Steel provides the rod through Kanematsu Corporation. Garphyttan Wire also purchases rod from Arcelor Mittal as Swedish plant. Garphyttan Wire has around 75% share in European automotive valve spring wire and around 50% share in USA. The firm tries to expand the world market share through the Chinese plant after the bases in Europe and USA. Kobe Steel has around 50% world market share for valve spring wire rod. The firm, which has supplied the rod to Garphyttan Wire, will expand the sales to European and US auto parts makers through Garphyttan Wire’s Chinese plant. Haldex Group has 4 auto parts divisions including spring wire, commercial vehicle brake system, hydraulic pump and brake system and all wheel drive electronic control system. The annual sales were 7.89 billion Sweden Krona in 2006.