Kobe Steel studies potential production base of compressors for process gas in Brazil and Europe. The executive vice president Kazuo Shigekawa said to reporters in Wuxi, China the firm would decide Brazil plant project in 2-3 years. The firm tries to expand the worldwide supply network.
The firm held presentation ceremony of new Wuxi Compressor of China with Kobe Steel’s technology on Monday after Kobe Steel purchased 44.3% share in Wuxi Compressor in April. Mr. Shigekawa said Kobe Steel would purchase additional share in Wuxi Compressor to control the majority. Kobe Steel now plants of compressor for process gas in Japan, USA and China as commodity grade compressor. The firm launches KOBELCO brand screw compressor in Chinese market from Wuxi operation. The firm expects 210 million yuan of KOBELCO brand sales out of targeted 950 million yuan of sales in 2012 and 720 million yuan of KOBELCO Brand of 1.6 billion yuan of total sales in 2016. Wuxi Compressor tries to develop export market mainly in Southeast Asia while the firm develops Chinese market. Kobe Steel expects 20-30% lower cost at Wuxi operation, which finishes the product with core parts from Kobe Steel. The compressor plant invests 100 million yuan in 18 months to improve productivity and quality while Kobe Steel completes basic technology in 5 years.