Kobe Steel Increases Cold Rolling Wire Production in Thailand

Kobe Steel installs additional two continuous annealing furnaces (short time cycle furnaces) in Kobe CH Wire (KCH), the subsidiary and cold rolling steel wire maker in Thailand, in order to meet the demand growth for cold forged automotive components. KCH is presently in full operation when car production has rebounded rapidly from the temporary down along flood. Kobe Steel follows the local demand expansion for high grade steels in Thailand where car production is expected to increase largely in future.

KCH and Mahajack Kyodo (MKCL), Kobe Steel’s affiliate and cold finished bar maker in Thailand, weren’t directly damaged by flood but their productions temporarily decreased along with Japanese automakers’ operative suspensions. In January, KCH and MKCL turned into output expansion when car makers shifted to production recovery.

KCH is renewing a large-size drawing machine which can produce steel wire with maximum 40 millimeters diameter. Ministry of Industry, Thailand prospects domestic car production would increase by 60% to 2.5 million sets in 2015 from 2011. High quality steel demand is expected to continue increasing. Kobe Steel will set total six STC furnaces in KCH to meet the users’ requests for steel wire supply increase.