Kobe Steel Increases Pig Iron Making Capacity in spring 2007

Kakogawa iron works of Kobe Steel, Japanese major integrated steel maker, is advancing the construction of no.2 blast furnace which has the capacity at 5.400 cubic meters. The firm will start the operation in spring 2007, which will stop the operation of no.1 blast furnace which has the capacity at 4,550 cubic meters. The firm aims to hold the capacity of pig iron production because the demand for high grade steel products such as special steel wire for automobile, high-tensile steel sheet or steel plate for shipbuilding. Kakogawa iron works has 2 blast furnace, which produced crude steel at 6.3 million tonnes in fiscal 2004 at ended of March 2005, which was highest ever, which at 6.21 million tonnes in fiscal 2005 because the iron works temporally reduced the production for steel sheet, and which is producing at full operation in now. Steel consumption goes into expansion phase in the world. Especially, the demand of high grade steel products is expanding for industrial manufacturing such as automobile. Kobe Steel decided to respond by the construction of no.2 blast furnace in Kakogawa iron works at the investment of about 400 billion yen because no.1 blast furnace will have relining phase in 2007.Total production capacity of pig iron making increases by about 10% in Kakogawa iron works by the operation of new blast furnace. The expansion of steel making capacity becomes next problem in Kakogawa iron works.