Kobe Steel Expands Welding Material Supply in China

Kobe Steel’s welding business unit accelerates expansion of production sites in Asia to follow strong demand growth for welding consumables in the region. In China, Kobe Steel examines capacity expansion at Kobe Welding of Tangshan (KWT), Hebei Province. At another production subsidiary, Kobe Welding of Qingdao (KWQ) in Qingdao, capacity expansion is smoothly progressing toward 1,000 tonnes per month within this year.

KWT produces solid welding wire for mild steels used in automobile and construction machine industries, mainly supplying to Japanese customers in China. Kobe Steel has carried out feasibility study for capacity expansion of KWT. Mr. Tsuyoshi Kasuya, Kobe Steel’s senior managing director and head of the welding business, said KWT’s capacity should be more than doubled to meet demand growth from car and construction machine industries. In China, annual demand for solid welding wire was estimated at 700,000 tonnes in 2010.

KWQ is under capacity expansion, reaching 1,000 tonnes per month within this year. KWQ produces flux cored wire for mild steels used in shipbuilding. Mr. Kasuya suggested KWQ’s capacity would be expanded to 2,000 tonnes per month in future. The production volume will be raised step by step.

In Chinese market, sales competition is currently severe with European suppliers of high grade welding consumables, those which are mainly adopted to energy industries. Kobe Steel is trying to improve and activate production and sales network all over China, led by Kobe Welding of Shanghai, Kobe Steel’s sales subsidiary of welding materials located in Shanghai.