Kobe Steel Plans to Increase Steel Powder Capacity

Kobe Steel’s steel powder business unit aims to return to profitability in fiscal 2010 ending March 2011. The firm has already increased the productivity of reducing furnace in Takasago works by 30% and improves the yield by 5% until the end of March 2010. The firm plans to increase the production capacity of the works by around 1,000 tonnes from 6,500 tonnes per month in mid-and-long term. The firm develops new products such as magnetic steel powder for motor of electric vehicle and powder for soil improvement.

Kobe Steel’s steel powder output was less than 40% for January-March 2009 compared from the level in April-September 2008 due to the stagnation in automobile. The production is estimated to recover to 90% for October-December 2009. However, the demand is unforeseeable after 2009.

The firm moved the production facilities of segregation-free steel powder, “SEGLESS” to Takasago works from closed company, Kobelco Metal Company of America to advance high value-added production. The firm aims to cultivate Asian market increasing the export not only to Japanese companies but also to Asian companies.