https://www.engineeringnews.co.za

Kobe Steel to invest $471m to raise automotive steel output

4th April 2018

By: Reuters

  

Font size: - +

Kobe Steel, Japan's third-biggest steelmaker, said on Wednesday it will invest 50-billion yen ($471-million) in domestic facilities to increase output of high-tensile steel to meet a growing need for lighter materials from automakers.

It is the company's first major capital investment since it admitted to supplying products with falsified specifications to about 500 customers last year, throwing global supply chains into turmoil.

Kobe Steel said it will build a new production line at Kakogawa Works in western Japan to raise its annual production capacity of automotive steel sheet by 240 000 t.

The new facility, which combines a continuous annealing line where metal is heated and cooled to make it stronger but less brittle, with hot-dipped galvanizing and other equipment, is expected to begin operations in February 2021.

The move comes as automakers are using lighter yet stronger materials to meet stricter regulations on fuel efficiency and collision safety.

Kobe Steel also said it will spin off its planned 1 300 MW power generation project in Kobe in western Japan into a new company on May 1.

"The spinoff is to make it easier for the new project to raise funds through project financing," a Kobe Steel spokesperson said.

Kobe Steel plans to build two 650 MW coal-fired power units in its old steelworks in Kobe, and aims to have the units operational in 2022 and 2023.

Japan's industry ministry separately issued a statement virtually approving Kobe Steel's coal power station project following an environmental assessment.

Edited by Reuters

Comments

Showroom

Hanna Instruments Image
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.199 0.262s - 166pq - 2rq
Subscribe Now