Kobe Steel’s Overseas Welding Material Sales to Increase by 14% in F2010

Kobe Steel’s overseas sales of welding materials are estimated to increase by 14% to about 180,000 tonnes in fiscal 2010 ending in March 2011 against fiscal 2009. Overseas sales ratio would keep flat at around 57%. The export for emerging countries and the sales by local offices are increasing. Kobe Steel recently restarted enhancement of overseas operations after the suspension since Lehman Shock in late 2008. The firm now eyes establishment of new production and sales bases in India, Indonesia, Russia, Brazil and Middle East.

Kobe Steel plans to raise flux wire production at Chinese subsidiary in Qingdao to 1,000 tonnes per month as originally planned from present 500 tonnes per month. The subsidiary started operation in November 2009 and started commercial sales in March 2010. Another productive subsidiary in Tangshan, China is also planned to increase the output capacity in order to meet recovering demand from Japanese construction machine makers including Kobelco Construction Machine and Sumitomo Heavy Industry.

Kobe Steel also restarted capacity expansion at Thai Kobe Welding and Kobe Mig Wire, two productive subsidiaries in Thailand. Added facilities will enter commercial operations in fiscal 2011.