Kobe Steel Limited plans to increase the production capacity of its subsidiary in China that makes aluminum forgings for automotive suspensions.
Kobe Steel will install an additional forging press as well as newly construct melting and casting equipment at Kobe Aluminum Automotive Products China Company Limited. Total investment is anticipated to reach JPY 4.5 billion and operations are to begin in March 2013.
Kobe Aluminum Automotive Products China was established in September 2010 in Suzhou, Jiangsu Province. The Phase I of the plant is currently under construction and is anticipated to begin volume production in August 2012.
In recently years, automobile companies in China have been rapidly increasing production, and there also is a growing need for lighter vehicles to meet stricter fuel consumption regulations. As a result, demand for aluminum suspensions in China is rising faster than originally estimated, and orders at KAAP China are anticipated to also grow.
Due to these conditions, Kobe Steel will install an additional 6,300 tonne mechanical forging press and heat treatment equipment at KAAP China. The company will also add upstream operations including a melting furnace and casting line. The capital investment will provide KAAP China with an integrated production system that will improve production efficiency.
The additional capital investment will enable KAAP China to expand marketing in China. If demand continues to rise, the company will consider adding more capacity.
Capital Investment
Major equipment
Phase 1
6,300 tonne mechanical forging press - 1 unit
Heat treatment equipment - 1 unit
Phase 2
6,300 tonne mechanical forging press - 1 unit
Heat treatment equipment - 1 unit
Melting furnace, casting line, billet processing line
Total investment
JPY 7 billion
(JPY 2.5 billion when company was established, with additional investment of JPY 4.5 billion)
Profile of Kobe Aluminum Automotive Products (China) Co Ltd
Location - Suzhou New District, Suzhou, Jiangsu Province, China
Established - September 2010
Start up - August 2012 (volume production)
President - Mr Yuji Numabe
Employees - Approximately 160 (at full production)
Capital- JPY 1 billion
Equity share - Kobe Steel 60%, Mitsui & Co Ltd 25%, Toyota Tsuho Corporation 15%
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