Kobe Steel Targets 330,000T Welding Material Sales in F2011

Kobe Steel plans to increase welding materials sales by 5% to 330,000 tonnes in fiscal 2011 ending in March 2012 compared with the previous financial year. The firm estimates the sales for domestic market would maintain flat at approximately 130,000 tonnes while the sales at overseas including export could increase by 10% or more. Mr. Tsuyoshi Kasuya, Kobe Steel’s senior managing director, showed an intention to increase the offshore sales including the export to more than 200,000 tonnes in fiscal 2011.

Kobe Steel estimates domestic steel frame demand at 4.0-4.5 million tonnes in fiscal 2011, almost as much as in fiscal 2010, while shipbuilding demand would slightly decrease year-on-year. Meanwhile, welding material import from South Korea is increasing when yen exchange rate maintains the strong trend. Kobe Steel tries to sustain the sales volume by total cost cut merits for both materials and welding processes.

In emerging countries such as Southeast Asia, China and India, welding materials are actively consumed in automobile and construction machine industries. Kobe Steel expects the market basically continues the growth despite of each government’s inflation controlling policy.

The firm utilizes a production center established in April 2011 to collect productive information from domestic and overseas welding material plants as well as to increase local material procurement at overseas sites. The production center is expected to become a control center to spread useful information and technology among the group plants.

The firm also focuses on training of local staffs at overseas sites in order to improve accommodation to local markets including better demand follow and feedback to the customers.