Kobe Steel Expands Welding Material Production in South East Asia

Kobe Steel announced on Tuesday the firm increases production capacity of Thai Kobe Welding (TKW), the firm’s welding material plant in Thailand, by 30% to 52,000 tonnes per year, and the capacity of Kobe Mig Wire (Thailand) (KMWT), another welding wire plant in Thailand, by 16% to 22,000 tonnes per year. The investment totals about 550 million yen. The firm increases the supply volume to follow expanding market in Southeast Asia. TKW introduces an additional productive line with about 440 million yen capex and starts the operation in summer 2009. TKW will become to hold total 4 productive lines. KMWT enhances annealing, drawing and galvanizing lines with about 110 million yen capex and stars the operation at the beginning of 2009. Kobe Steel supplies welding bar for shipbuilding and building construction, and welding wire for automobiles, motorcycles and construction machineries. The demand is expanding especially from shipbuilding and automobiles in Southeast Asia. Kobe Steel will also increase the production volume of Kobe Welding Malaysia by 2,000 tonnes to 5,000 tonnes per year by August 2009. The firm sells welding materials at 120,000 tonnes per year in Southeast Asia. The market volume in the region is about 300,000 tonnes per year, which is expected to grow about average 5% per annum.