Kobe Steel to Expand Titanium Melting Capacity by 30-40% by 2008

Kobe Steel announced on Wednesday the firm expands titanium output capacity by 30-40% by January 2008 for 5 billion yen. The firm tries to meet growing demand for air plane and industrial applications by adding new melt shop at Takasago works. The firm will expand the subsidiary’s titanium welding pipe making line by 30% and convert counterblow hammer for closed die forging at Takasago works after the 30% expansion of continuous sheet annealing and pickling line at Kakogawa works. The firm builds new melt shop next to existing shop at Takasago. The firm tries to establish stable and efficient production system through the investment to introduce Kobe method, vacuum arc remelting method, which enables to use titanium scrap as raw material. The firm also improves cost competitiveness. The firm considers additional expansion to meet higher demand. The firm already started operation of continuous annealing and pickling line at Kakogawa after 500 million yen of investment at the downstream operation. The firm tries to shift to higher valued products to meet higher demand for air plane engine disc and alloyed titanium forging products through the upgrade of counterblow hammer at Takasago commissioning May 2007. The firm also starts operation of expanded titanium welded pipe making line at the subsidiary, Kobe Special Tube in May 2007.