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Kobe Steel's Welding Business makes organizational changes
March 24, 2011
Kobe Steel, Ltd.'s Welding Business will make the following organizational changes effective April 1.
1. Background and Purpose
The environment surrounding the Welding Business is becoming increasingly uncertain. Demand for welding products in Japan, Europe and North America continues to be sluggish, and competition in the Asian market has escalated considerably. Imported welding products are flowing into Japan, the prices of steel raw materials have risen sharply, and the yen remains high.
Under these conditions, it has become necessary to thoroughly improve cost competitiveness in manufacturing. Strengthening procurement capabilities and building an optimum production system are crucial issues. In global business development, it is increasingly important to improve manufacturing capabilities at overseas locations.
In view of the these conditions, Kobe Steel will merge Kobe Welding Wire Co., Ltd. into the company effective April 1 and will carry out other organizational changes in production. The Production Center will be newly created to oversee production. Demand and supply, procurement planning, safety and training, equipment management, production technology and other dispersed management resources involved with production will be consolidated. The Welding Business intends to raise its comprehensive capabilities in production, including production support, to strengthen manufacturing capabilities at overseas plants and human resources development.
2. Organizational Changes
1. Production
- The Production Center will be newly created to oversee domestic production. The following three sections will report directly to the General Manager of the Production Center, which will be located in Ibaraki, Osaka.
- A. The Production Planning Section will be newly created. The supply and demand for welding consumables, safety and health management, technical training and other functions in the Planning & Administration Department will be transferred to the new section.
- B. The Procurement Section will be newly created. The procurement function of steel wire rod, cold-rolled steel and other materials in the Planning & Administration Department and the procurement planning function for the raw materials of fluxes in the Flux Manufacturing Section at the Ibaraki Plant will be transferred to the Procurement Section.
- C. The Production Engineering Section will be newly created. The development function involved with production technology in the Welding Process Section in the Technical Development Department will be transferred to the new Section. The equipment technology function in the Planning & Administration Department will also be transferred to the new Section.
- The Flux Manufacturing Section in the Ibaraki Plant will be discontinued. The procurement planning function of raw materials for fluxes will be transferred to the Procurement Section. The production and quality control functions in the Flux Manufacturing Section will be transferred to the General Administration Section and the Manufacturing Section in the Ibaraki Plant.
- Kobe Welding Wire Co., Ltd. will be merged into Kobe Steel, and its manufacturing facility will become the Fukuchiyama Plant. The General Administration Section and the Manufacturing Section will be newly created at the plant.
2. Technical Development Department
- The development function for production technology in the Welding Process Section will be transferred to the Production Engineering Section in the Production Center.
- The Patent Affairs Section will be renamed the Intellectual Property Section.
3. Planning & Administration Department
The International Operations Section will be discontinued and will be integrated into the Planning & Administration Department.
Organizational Chart
