Kobe Steel to build a new wire rod plant in China

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.