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Aluminum forging plant in China to increase production capacity
December 15, 2011
TOKYO, December 15, 2011 - Kobe Steel, Ltd. plans to increase the production capacity of its subsidiary in China that makes aluminum forgings for automotive suspensions. Kobe Steel will install an additional forging press, as well as newly construct melting and casting equipment at Kobe Aluminum Automotive Products (China) Co., Ltd. Total investment is anticipated to reach 4.5 billion yen and operations are to begin in March 2013.
Kobe Aluminum Automotive Products (China) (or KAAP China) was established in September 2010 in Suzhou, Jiangsu Province. The first phase of the plant is currently under construction and is anticipated to begin volume production in August 2012.
In recently years, automobile companies in China have been rapidly increasing production, and there also is a growing need for lighter vehicles to meet stricter fuel consumption regulations. As a result, demand for aluminum suspensions in China is rising faster than originally estimated, and orders at KAAP China are anticipated to also grow.
Due to these conditions, Kobe Steel will install an additional 6,300-metric-ton mechanical forging press and heat treatment equipment at KAAP China. The company will also add upstream operations including a melting furnace and casting line. The capital investment will provide KAAP China with an integrated production system that will improve production efficiency.
The additional capital investment will enable KAAP China to expand marketing in China. If demand continues to rise, the company will consider adding more capacity.
Capital Investment
| Major equipment: | Phase 1: |
6,300-metric-ton mechanical forging press - 1 unit |
| Phase 2: |
6,300-metric-ton mechanical forging press - 1 unit |
|
| Total investment: |
7 billion yen (2.5 billion yen when company was established, with additional investment of 4.5 billion yen) |
|
Profile of Kobe Aluminum Automotive Products (China) Co., Ltd.
| Location: | Suzhou New District, Suzhou, Jiangsu Province, China |
| Established: | September 2010 |
| Start-up: | August 2012 (volume production) |
| President: | Yuji Numabe |
| Employees: | Approximately 160 (at full production) |
| Capital: | 1 billion yen |
| Equity share: | Kobe Steel 60%, Mitsui & Co., Ltd. 25%, Toyota Tsuho Corporation 15% |
