Kobe Steel to Raise Steel Output at Kakogawa in July

Kobe Steel will raise steel output at Kakogawa works in Hyogo, Japan to the originally planned level before the major earthquake from Japan. The works’ production volume is about 10% lower than the original output plan during April-June along economic downturn after Japan Earthquake. The operating rate is averagely 1.75 for April-June. The works will raise the operating rate to 1.8-1.9 at No.2 and No.3 blast furnaces along automakers’ production recovery. Mr. Yoshinori Onoe, general manager of Kakogawa works, explained at a press conference on Thursday.

Kakogawa works’ crude steel production is estimated at average 500,000 tonnes per month for April-September 2011, decreasing by 3% from the corresponding period of 2010. The output of steel products is estimated at average 424,000 tonnes per month, decreasing by 1%. The works targets to raise its exporting sales rate to 40% until fiscal 2015 ending March 2016 from 33% in fiscal 2010 as well as increase the sales rate of Only One products to 50% from current 43%.

Only One products include high tensile steel sheet for automobile, steel plate for pipelines, marine structures and tanks, and steel wire rod for saw wire and bearing. Kakogawa works progresses technical development and capital expenditure for these products, even eyeing output capacity expansion.

The works aims to increase the exporting rate mainly with Only One products. Meanwhile, the works tries to lower production costs more when international price competition is being severer.