Japanese steelmaker Kobe Steel has announced that it plans to make capital investments of approximately JPY 36 billion ($436.88 million) to expand the hot metal treatment capacity at its Kakogawa Works and Kobe Works and also the heat treatment capacity for steel plate at the Kakogawa Works.
According to the company statement, desulfurization equipment and a dephosphorization furnace will be installed in Kakogawa Works with a total investment of JPY 30 billion ($386.55 million). The commissioning is scheduled for end of June 2014.
Kobe’s investment in the new hot metal treatment equipment in Kobe Works will total JPY 2 billion ($25.77 million). New equipment to be commissioned at the end of October 2012 will allow highly efficient processing. The company also announced a third investment for a new continuous heat treatment furnace for steel plate in Kakogawa Works. The new furnace to be built with a total investment of JPY 4 billion ($51.5 million) will double the heat treatment capacity. The start-up is expected at the end of December 2012.
These investments will enable Kobe Steel’s iron and steel segment in increasing its sales of high-end products to comprise 50 percent of segment sales by the fiscal year 2014-15.