Kobe Steel Expands China Wire Production Capacity
Kobe Steel, Ltd. and its partners will invest $8 million to expand production at their Chinese joint venture, Kobe Special Steel Wire Products (Pinghu) Co., Ltd. (KSP). This move strengthens the company’s position in the global special steel wire market.
Kobe Steel China Wire Production Expansion Details
The Kobe Steel China wire production expansion marks the fifth capacity increase at KSP. The joint venture includes Shinsho Corporation, Osaka Seiko Limited, Meihoku Kogyo Co., Ltd., Metal One Corporation, and Kyodo Shaft Co., Ltd.
Kobe Steel continues to support the operation by supplying all special steel wire rod, ensuring consistent high-quality production standards.
Production Capacity and Equipment Upgrades
To meet rising customer demand, the company will install new equipment. Specifically, KSP will add:
- Three wire drawing machines, increasing the total to 11
- Two heating furnaces, bringing the total to eight
As a result, production capacity will increase to 5,500 metric tons per month. The new machines will begin operation in March and June 2020.
Supporting Automotive and Industrial Manufacturing
KSP produces cold heading (CH) steel wire for manufacturers. These materials support the production of automotive bolts, nuts, and bearing components. Since its founding in 2007 and full operation in 2009, KSP has played a key role in supplying precision steel products.
Global Strategy and Market Expansion
Kobe Steel focuses on four key regions: Japan, ASEAN, North America, and China. The company has already built a strong global network, including:
- Two processing plants in Thailand
- One plant in the United States
- One plant in Mexico
- Four plants in China
Looking ahead, Kobe Steel plans to expand its global supply network further. The company aims to deliver high-quality special steel wire rods to manufacturers worldwide.
Learn more about Kobe Steel:
https://www.kobelco.co.jp
