Kobe Steel Launches New 5-10-Year Target for Global Growth

Kobe Steel announced on Wednesday the firm targets more than 200 billion yen of consolidated recurring profit with 3 trillion yen of sales in 5-10 years period under the new mid-term plan, KOBELCO Vision “G.” The firm tries to create new value and expand the global business by combining technology and knowhow of materials including steel, aluminium and copper and machinery businesses.

The firm posted 60.8 billion yen of consolidated recurring profit with 2.1 trillion yen of sales for fiscal 2008. The firm increases the sales by 900 billion yen in 5-10 years through wider global business opportunity for each business.

The president Hiroshi Sato said the firm tries to follow growing market globally through the original only one technology, products and services. The firm improves the development of the original products and services, manufacturing competitiveness and group synergy.

The firm expects the material business represents 60% and the steel business represents 40% of 3 trillion yen of annual sales and the offshore sales is around 50% of the total sales.

Mr. Sato said the steel business will accelerate the global growth for high tensile flat steel and special steel by developing emerging market including China and India. The steel unit also seeks further tie-up with ITmk3 technology and direct reducing iron business.

The welding unit, which is world no.3 position, targets world top position through better global operation. The natural resources and engineering unit focuses on ITmk3 project in Vietnam. The construction machinery unit increases the share in Chinese market from 11% in 2009 to 15% in 2015-20.