Kobe Steel’s Al & Cu Unit Targets 40% Offshore Sales in F2015

Kobe Steel’s aluminium and copper unit targets to increase offshore sales rate from current around 30% to 40% in fiscal 2015 ending March 2016. The unit tries to follow growing demand mainly in Asia by increasing export and offshore production.

The unit already will have 3 production bases including USA and China for aluminium forging for automotive suspension when the unit already established Chinese joint venture in 2010. The unit tries to expand offshore production for other items.

The unit already has US aluminium forging plant and Thai copper tube plant. The unit also has processing plants for copper flat and strip products in China, Thailand and Singapore. The unit exports aluminium flat products with no offshore production base.

The firm launches aluminium forging production in China in August 2012 through joint venture with Mitsui & Co. and Toyota Tsusho Corporation. The joint venture with around 1.2 million units of annual output capacity is to serve transplants of European and Japanese automakers.

Kobe Steel’s senior managing director Tetsu Takahashi said the unit will export aluminium flat and extrusion products from Japan to offshore market as long as the capacity can meet the demand. The firm studies potential offshore production at first for downstream operation.

Mr. Takahashi said the unit keeps supplying copper strip and flat products from Chofu plant and has no intention to build offshore plant. He said the firm could have license partner in Europe and USA when the firm would have to supply the products to other areas than Asia.

The unit expanded Thai copper tube production capacity from annual 27,000 tonnes to 30,000 tonnes in 2010. The unit has no immediate plan for investment in offshore copper tube production.