Kobe Steel announced on Wednesday the firm established high grade steel spring wire making subsidiary, Kobelco Spring Wire (Foshan) in Guangdong. The firm tries to follow growing demand in China through the local base with monthly 600 tonnes of wire making capacity. The plant starts operation in first half of 2013. The plant is 4th Chinese base of Kobe Steel’s wire processing.
Kobe Steel’s Chinese headquarters company, Kobelco Holding (China) controls 100% of the subsidiary with 650 million yen of capital. The subsidiary is located in Kobe Wire Products (Foshan), which is cold heading wire and cold finishing bar making plant. The group’s steel wire maker, Shinko Wire and automotive parts maker, Suncall supports the new plant. Chinese automobile production reached 18.42 million units in 2011. Automakers try to reduce vehicle weight and improve fuel economy to meet severer regulation. Major spring makers expand the plant in China to meet the demand. Kobe Steel expects the high grade wire demand also increases for transplants of Japanese, US and European automakers.