Kobe Steel Establishes China Headquarters in Shanghai

Kobe Steel announced on Thursday the firm opens China headquarters in Shanghai on April 1st. The company covers total management of Kobe Steel group companies’ activities and fund administration in China as well as investing and M&A functions in the country. This is the first China headquarters established by Japanese integrated steel maker. Kobe Steel aims to more than double its Chinese business in 5-10 years from current 200 billion yen per annum by expansion of existent business sites and establishment of new bases.

Capital fund of China headquarters, named Kobelco (China) Holding, is US$ 50.14 million, wholly invested by Kobe Steel. The company was established in January 2011.

Kobe Steel aims consolidated net sales at 3 trillion yen with recurring profit at 200 billion yen 5-10 years later along its mid-long term business vision. The Group plans to double overseas net sales to 1.5 trillion yen and regards China as the most important market.

In China, Kobe Steel has 3 production bases of steel wire, 2 production bases of welding materials, processing bases of copper alloy sheet, 2 production bases of hydraulic shovel. Kobe Steel’s affiliates in China totals 31 companies. Kobe Steel already decided establishment of new production bases for aluminum forging and hydraulic shovel while the firm eyes expansion of existing production bases as well as establishment of new production bases.