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Kobe Steel plans capital investments of 92 billion yen in fiscal 2008
April 25, 2008
Kobe Steel will carry out projects to improve its line-up of ."Only One" upper-end products and upgrade its manufacturing capabilities to increase the competitiveness of the company.
Most of the investments are in the Iron & Steel segment. At the Kakogawa Works, the company plans to increase sintering capacity. Kobe Steel will also increase the production capacity at the Takasago Works' Steel Casting and Forging Plant, which makes crankshafts for large ships. An environment-related investment is the installation of denitration equipment at the sintering plant in the Kakogawa Works.
Capital investments in fiscal 2008 will be less than the 114.6 billion yen spent in fiscal 2007. Much of the higher capital expenditure last year went to refurbishing and rebuilding two blast furnaces, one at the Kakogawa Works and the other at the Kobe Works.
Construction costs and outlays (parent only)
| (in billions of yen) | FY2007 | FY2008 (planned) | % of change |
| Construction costs Iron & Steel only |
114.6 94.0 |
92.0 69.0 |
(20%) (27%) |
| Outlays Iron & Steel only |
112.4 85.8 |
110.0 88.0 |
(2%) 3% |
| Depreciation Iron & Steel only |
76.4 57.7 |
94.0 67.0 |
Outlays may include payments for work completed in a previous fiscal year.
Investments by segment (parent only, construction cost basis)
| (in billions of yen) | FY2007 | FY2008 (planned) |
| Iron & Steel | 94.0 | 69.0 |
| Aluminum & Copper | 12.4 | 12.0 |
| Others | 8.2 | 11.0 |
| Total | 114.6 | 92.0 |
Main projects for fiscal 2008:
| Iron & Steel Segment |
| Project: | Increasing sintering capacity | |
| Products: | Steel sheet, plate, wire rod, etc. | |
| Amount in FY2007: | 2.8 billion yen | |
| Total investment: | 2.8 billion yen | |
| Construction period: | :April 2007 |
Kakogawa Works
| Project: | Installation of denitration equipment at the sintering plant | |
| Products: | Steel sheet, plate, wire rod, etc. | |
| Amount in FY2007: | 3.3 billion yen | |
| Total investment: | 15.0 billion yen | |
| Construction period: | :December 2007-March 2010 |
Takasago Works:
| Project: | Increasing production capacity of steel castings and forgings | |
| Products: | Marine crankshafts | |
| Amount in FY2007: | 2.5 billion yen | |
| Total investment: | 30.0 billion yen | |
| Construction period | :July 2008 - March 2010 |
| Previous Major Capital Investment Projects |
| Facility | Project | Products | Amount* | Construction Period |
| Kakogawa Works | New vacuum degassing equipment and desulfurization equipment | High strength steel sheet, specialty steel, etc. | 5.0 | Sept. 2003 to Oct. 2004 |
| Kobe Works | New construction of No. 5 continuous bloom caster | High quality specialty steel | 8.5 | Apr. 2004 to Aug. 2006 |
| Kobe Works | Upgrading of bar mill to improve product quality and inspection | High quality specialty steel | 1.0 | Nov. 2005 to Mar. 2007 |
| Kakogawa Works | Refurbishment of No. 2 blast furnace | Steel sheet, plate, wire rod, etc. | 40.0 | Sept. 2004 to May 2007 |
| Kobe Works | Rebuilding of No. 3 blast furnace | High quality specialty steel | 10.0 | Nov. 2007 to Dec. 2007 |
Aluminum & Copper segment
| Daian Plant | Installation of No. 4 mechanical forging press | Aluminum forgings for suspensions, etc. | 1.0 | Apr. 2004 to Sept.2004 |
| Moka Plant | Replacement of motor at hot strip finishing mill | Aluminum sheet (for automotive panel material, bottle can stock, etc.) | 0.7 | Apr. 2004 to Jan. 2005 |
| Moka Plant | Remodeling of No. 1 cold rolling mill to increase rolling speed | Aluminum sheet | 1.4 | Apr. 2005 to Feb. 2007 |
Reference
Capital investments in previous years (in billions of yen)
| Fiscal years | Construction costs | Outlays | Depreciation |
|
1999 |
56.0 | 69.0 | 71.8 |
| 2000 | 57.0 | 40.0 | 69.2 |
| 2001 | 43.9 | 51.3 | 65.7 |
| 2002 | 24.0 | 25.0 | 61.4 |
| 2003 | 35.8 | 33.1 | 56.5 |
| 2004 | 46.2 | 35.3 | 54.8 |
| 2005 | 58.5 | 54.1 | 51.9 |
| 2006 | 96.2 | 76.3 | 56.0 |
| 2007 | 114.6 | 100.0 | 76.4 |
| 2008 (planned) | 92.0 | 110.0 | 94.0 |
