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Kobe Steel's capital investment plans for fiscal 2009

May 14, 2009

TOKYO, May 14, 2009 - Kobe Steel, Ltd. plans to invest 118 billion yen on a nonconsolidated basis to upgrade its plant and equipment in fiscal 2009, ending March 31, 2010. Total investment is anticipated to increase 38% in fiscal 2009, compared with 85.3 billion yen in fiscal 2008.

In the Iron & Steel segment, the major projects consist of the installation of nitrogen-oxide removal equipment at the sintering plant, refurbishing the power generation boilers, and installing additional casting equipment and a new forging press line to increase the production capacity of crankshafts for ships.  In the Machinery segment, the company will continue construction of a large-capacity compressor testing facility.

In addition to environment-related projects, Kobe Steel's capital investments are intended to expand "Only One" high-end products and improve its manufacturing capabilities to increase its competitive edge. 

Total capital investment (parent only)

(in billions of yen)	FY2008	FY2009 (planned)	% of change
Construction basis Iron & Steel only	85.3 68.1	118.0 102.0	38% 49%
Payment basis Iron & Steel only	100.0 81.7	103.0 85.0	3% 4%
Depreciation Iron & Steel only	91.1 66.0	93.0 66.0

Investment by business segment (parent only, construction basis)

(in billions of yen)	FY2008	FY2009 (planned)
Iron & Steel	68.1	102.0
Aluminum & Copper	9.3	6.0
Others	7.9	10.0
Total	85.3	118.0

Major projects in fiscal 2009 (parent only, construction basis)

	Iron & Steel Segment

Facility	Project	Products covered	Amt* in FY09	Period
Kakogawa Works	NOx removal equipment at sintering plant	Steel sheet, plate, wire rod, etc.	15.0 (Total amt: 17.7)	Dec. 2007 - Mar. 2010
Takasago Works	Higher capacity of steel castings and forgings	Marine crankshafts	20.0 (Total amt: 30.0)	Jul. 2008 - Mar. 2010
Kakogawa Works	Refurbishing of power generation boilers	Steel sheet, plate, wire rod, etc.	21.0 (Total amt: 70.0)	2nd half FY09 - 2nd half FY14

* in billions of yen

	Others (Machinery Segment)

Facility	Project	Products covered	Amt* in FY09	Period
Takasago Works	Large compressor testing facility	Nonstandard compressors	4.1 (Total amt: 4.1)	May 2008 - Mar. 2010

* in billions of yen