Kobe Steel to build a new wire rod plant in China
Japan's third largest steelmaker Kobe Steel Ltd is reportedly planning to form a joint venture in
China's Jiangsu province next month in order to produce special steel
wire rod for
China's automobile industry.
35% of the joint venture will belong to Kobe Steel, while 15% will belong to a local company and the rest to Mitsui & Co and Sugita
Wire Ltd.
The plant of the joint venture is expected to start
production in October 2006 with 7'200 tons per annum capacity. The capacity of the new plant will be increased to 11'000 tons by 2010.
Kobe Steel has another
wire rod plant in
China's Guangdong province. With these two plants, the company aims at taking over 40% market share of special steel
wire rods in
China.