Shanghai Cosco Kawasaki Heavy Industries Steel Structure, Chinese steel frame maker and a joint company between Cosco and Kawasaki Heavy Industries, constructed a new factory in Bao San area, Shanghai, and starts the operation in September. The company relocated the factory to expand the processing capacity by 1.4 times to 50,000 tonnes per month. The capacity expansion is necessary when the firm currently accepted orders from Bechtel Corporation, American engineering company, and concluded a long-term contract with Vale, Brazilian resource company. The new factory is expected to immediately enter full operation. Shanghai Cosco Kawasaki Heavy Industries Steel Structure tries to increase order receipts globally as well as seeks new businesses for sustainable growth.
The new factory has H-beam welding line, Box welding line, Build H line, large size NC lathe machine, searing machine and punch press on the site of 140,000 square meters. The company increases the employee number by 200 in addition to current 700. Approximately 450 people work at the productive sites. The company has acquired Japanese steel frame standard for H grade to meet the customers’ requirement for complicated shape structures. Bechtel is increasing its order receipts for energy plant construction such as LNG. Vale is also increasing structure constructions along mine development projects. Shanghai Cosco Kawasaki Heavy Industries Steel Structure plans to increase its annual sales to 500 million yuan in 2011 from 3 million yuan in 2010 and targets 700 million yuan in 2012 after commission of the new factory. Shanghai Cosco Kawasaki Heavy Industries Steel Structure was established in 1997 and commissioned the operation in 1999. The company is jointly controlled by Cosco with 50% shares and Kawasaki Heavy Industries with 45% shares as well as and 5% shares held by Marubeni-Itochu Steel. The joint company shifted to increase order acceptance of overseas projects in and after 2004.