On July 12, Japanese steelmaker Kobe Steel announced that its Chinese subsidiary, Kobelco Compressors Manufacturing (KCMS), has increased production capacity at its compressor plant in Shanghai, China. A new manufacturing line in the expanded facility has been completed and has started commercial operation. Approximately RMB 74 million (US$11 million) was invested in the expansion.
To meet the growing market, KCMS added the new manufacturing line, which increases total annual capacity to 3,500 units, from the previous 2,200 units. KCMS also has its own development unit that enables it to design products adapted to the local market.
Standard compressors are widely used in plant utilities in numerous industries. Demand for compressors has risen sharply in recent years due to strong economic growth in China and other emerging countries.
Kobe Steel is focusing on growing its global business. It has launched new facilities in the United States and China. The company statement said that they aim to increase sales to RMB 110 billion (US$16 billion) by 2015.