Kobe Steel to Accelerate R&D Effort for New Products

Kobe Steel seeks stability and growth under the new 3-year plan to fiscal 2008 ending March 2009. Mr. Hiroshi Sato, executive vice president and head of technical development group said the firm tries to create new products to increase the original products sales rate. Mr. Sato said the better manufacturing ability including technology and cost competitiveness is the key for stability and growth. The firm revised the definition of the only one products, which have certain presence in the market, and tries to increase the rate from 35% in fiscal 2005 to 40% in fiscal 2008 and to 45% after that. The firm focuses on development of new products in lighter automobile, electronic materials and mineral and energy. The firm also tries to improve the production technology for stable supply of high valued products. The firm expends consolidated 29 billion yen per year for research and development in next 3 years compared with 25 billion yen in past 3 years. The firm also increases the R&D investment to 25 billion yen for steel unit from 21 billion yen. The firm plans 340 billion yen of capital expenditure for next 3 years, which increases by 100 billion yen from past 3 years. The steel unit relines and expands no.2 blast furnace at Kakogawa works in early 2007 and no.3 blast furnace at Kobe works in late 2007.