Kobe Steel to Expand Pig Iron Refining, Plate Heat Treatment Capacity

Kobe Steel announced on Thursday the firm expands capacity of pig iron treatment of Kakogawa and Kobe works and plate heat treatment of Kakogawa for around 36 billion yen. Through the investment, the firm increases only one products rate to 50% of iron and steel unit’s sales in fiscal 2015 ending March 2016 from 30% in fiscal 2010. The firm expects the higher pig iron treatment capacity results in around 10 billion yen per year of cost reduction.

The firm builds new pig iron treatment plant with 2 desulfurization equipments and a dephosphorization equipment at Kakogawa for around 30 billion yen to start operation in June 2014. The firm establishes efficient desulfurization and dephosphorization process for all pig iron. The firm adds a desiliconization and desulfurization equipment at Kobe works for around 2 billion yen to start operation in October 2012. The firm improves the efficiency while the works uses existing pig iron treatment furnace only for desulfurization.

The firm adds a continuous heat treatment furnace at plate mill of Kakogawa for around 4 billion yen to start operation in December 2012. With the furnace, the plant doubles the treatment capacity to increase sales for only one products for energy industry.

The firm removes sulfur and phosphorus from pig iron to make the only one products including automotive high tensile flat steel, steel cord and bearing steel. The firm makes special grade plate for energy industry with the additional refining and heat treatment processes.

Through the expansion, the firm expands the refining and plate heat treatment capacity for more sales of only one products. The firm expects around 30% of cost reduction by reducing consumption of lime and other materials and better yield. The firm also expects the higher refining capacity allows the works to use lower grade raw materials.