Kobe Steel to Optimize Special Steel Bar & Wire Rod

Kobe Steel tries to optimize production system of special steel bar and wire rod for 3 mills at Kakogawa and Kobe works. The improvement will increase the supply capacity by 15% by fiscal 2008 ending March 2009 compared with fiscal 2005. The firm started to improve wire rod coil specification at no.8 wire rod mill at Kakogawa for flexible production allocation among 3 mills. The firm tries to meet growing demand for automobile by better cooperation between the works along with better quality. Kobe Steel supplies high valued special steel bar and wire rod mainly for automobile including materials for engine valve spring with world no.1 share, suspension spring, steel wire for cold heading and steel for gear. The products line including strategic products and only one product represents a third of total steel output. The firm produces those products line at no.7 wire rod mill and bar mill at Kobe works and no.8 wire rod mill at Kakogawa. Kakogawa is mass production base while Kobe produces various items with small lots. The firm produced near 200,000 tonnes of special steel bar and wire rod in fiscal 2005 to meet high level demand. The firm shifts the production of special steel bar and wire rod from no.7 wire rod mill at Kobe works to no.8 wire rod mill at Kakogawa, which has additional production capacity. The firm tries to increase the output capacity by the optimization of production. The firm converts finishing line of no.8 wire rod mill at Kakogawa to expand coiling diameter as no.7 wire rod mill at Kobe works. The firm already started the preparation for the conversion finishing the working in second half of fiscal 2007. The larger coiling diameter reduces coil height resulting in de-bottleneck at pickling and heat treating processes. The conversion contributes to smooth shifting of production from no.7 wire rod mill at Kobe works to no.8 wire rod mill at Kakogawa.