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Kobe Steel to build 4th wire rod processing plant in China - 25 January 2012

Japan's Kobe Steel has begun constructing a fourth wire processing plant in China this month to meet growing demand for automotive springs. Its subsidiary Kobelco Spring Wire (Foshan) Co (KSW) plans to start operating the plant, which will be able to process some 600 tonnes/month of wire rod into springs, in the first half of 2013.

"Demand for spring wire in China is increasing because major spring makers are aggressively expanding production, and we are going to respond to this growing demand,” a Kobe spokesman tells Steel Business Briefing.

KSW is 100%-owned by Kobe Steel’s investment company in Shanghai. Technology will be supplied by Kobe group wire processing companies such as Shinko Wire Products in Hyogo prefecture and Suncall in Kyoto. KSW will be located at Kobe Wire Products (Foshan) in Guangdong in south-eastern China.

“Kobe Wire Products (Foshan) has available space for the plant and this will help us keep costs down,” the Kobe spokesman said. Kobe Wire Products (Foshan), which is 60%-owned by Kobe, currently produces about 1,200 tonnes/month of cold drawn bars for suspensions and 200 t/m of CHQ wire for fasteners.

Kobe Special Steel Wire Products (Pinghu) in east China’s Zhejiang province, held 50% by Kobe, currently produces about 1,300 t/m of CHQ wire, and could lift output to 2,300 t/m by 2015, along with 1,000 t/m of bearing steel wire.

Kobe also supplies rod to Jiangyin Sugita Fasten Spring Wire in eastern China which produces oil tempered wire. “We will supply our high quality rod to the new plant,” the Kobe spokesman noted.

 

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