Kobe Steel to Launch Al Forging Auto-Parts Plant in China

Kobe Steel announced on Wednesday the firm establishes new company in Suzhou, China to make aluminium forging suspension parts for automobile. Kobe Steel tries to flow growing Chinese demand. With the Chinese plant, Kobe Steel establishes global supply bases network for 3 major automobile markets including Japan and USA.

Kobe Steel establishes the new company, Kobe Aluminum Automotive Products (China) with 1 billion yen of capital in June. The new company builds plant with 6,300 tonnes mechanical press machine and heat treatment facility for 2.5 billion yen starting operation at monthly 70,000-80,000 units of production capacity in August 2012.

Automakers try to reduce automobile weight by using more aluminium forging parts for suspension. Kobe Steel has 4 mechanical press machines each in Mie plant and US subsidiary, Kobe Aluminum Automotive Products to meet the growing demand. The firm decided the new plant when world automakers expand the Chinese operations.

The firm launched new mid-term business plan on Wednesday for global growth. The aluminium business tries to meet automakers’ needs to reduce weight through the advanced technology and original products. Kobe Steel will also expand the export of flat aluminium products to offshore transplants of automakers.