Japanese steel producer Kobe Steel has announced the opening of a new marketing company in Kolkata, West Bengal, to market its steel production machinery in India.
Kobe Steel's new marketing company is called Kobelco Machinery India Private Limited (KMI), and will be specialized in selling steel rolling mills, continuous casters, nonferrous rolling mills and presses. A 90 percent equity share in KMI is held by Kobe Steel, while the remaining ten percent share is held by trading firm Shinsho Corporation, a Kobe Steel affiliate.
To date, Kobe Steel's Heavy Machinery Department in its Machinery and Engineering Company has marketed steel production machinery primarily in Japan. Realizing the potential of India's growing market, Kobe Steel decided to establish a marketing office in Kolkata. India's apparent steel use reached 52.6 million metric tons in 2008 and is expected to rise to 53.5 million metric tons in 2009, according to the World Steel Association. India's Ministry of Steel anticipates crude steel capacity of 200 million metric tons in 2020.
Kobe Steel's annual heavy machinery sales amount to roughly Yen 10 billion (approx. $104 million). The producer is Japan's top supplier of steel bar rolling mills, mostly to electric steelmakers.