Kobe Steel’s Kobe Iron Works Increases Special Steel Wire Rod and Bar to Automobile

Kobe iron works of Kobe Steel plans to increase production of steel product by 20,000 tonnes to 130,000 tonnes per month for October 2011-March 2012 or the last half of fiscal 2011, and aims full operation. The works will increase crude steel output to 110,000 tonnes per month in the last half of fiscal 2011. The works was forced in production cut for April-May by decreased output of automobile when the disaster of the Great East Japan Earthquake made impact supply chain. However, the works will increase supply of steel products when automobile makers plan to produce high level in the last half of fiscal 2011. The works is supreme works for special steel bar and wire in the world, and has the capacity at 130,000 tonnes per month. Especially, the works supplies wire rod for valve spring and steel wire rod for other spring. The works’ crude steel production increased by over 20,000 tonnes to near 110,000 tonnes per month in fiscal 2010 from fiscal 2009 when the demand recovered from Lehman’s fall. However, the production decreased by about 30% for April-May due to decreased car output aftermath of the disaster, and slightly reduced to around 95%.

The works’ production was over 100,000 tonnes per month for April-June, while is expected to slightly increase to 110,000 tonnes for April-September by scheduled refinement of wire rod and bar rolling mill in July-August.