Kobe Steel’s Welding Unit to Expand Flux Cored Wire Output

Kobe Steel’s welding unit eyes flux cored wires expansion to monthly 10,000 tonnes when the firm tries to improve the global supply ability to meet growing demand for shipbuilding and marine structure. The unit, which produced 7,000 tonnes in fiscal 2005 ended March 2006 and 8,000 tonnes in fiscal 2006, increases the domestic output along with the expansion in South Korea, Netherlands and China. The unit also studies for North American plant. The flux cored wires, which provide high welding efficiency and better weldability, is used for shipbuilding, marine structure, bridge and building. The unit’s sales were monthly 8,000 tonnes in fiscal 2006, of which offshore sales represented 50%. The Ibaraki plant has expanded the output by annual 10% since fiscal 2004 and the output reaches 6,000 tonnes in fiscal 2007. Kobe Welding of Korea in South Korea finished capacity expansion from monthly 1,400 tonnes to 1,800 tonnes. Kobe Welding of Europe in Netherlands doubles the output capacity to 500 tonnes in fiscal 2008. Kobe Welding of Tangshan starts the 250 tonnes operation in the autumn and eyes expansion to meet growing shipbuilding demand. Kobe Welding of America in USA, which imports monthly 500 tonnes from Japan, studies local production. The world market is estimated to be annual 3.5 million tonnes except for Russia and Eastern Europe and the firm estimates flux cored wire demand is around 350,000 tonnes. One of the 3 major welding material makers of Kobe steel increases the sales to more than 350,000 tonnes in fiscal 2007 compared with around 340,000 tonnes in fiscal 2006.