Japanese steelmaker Kobe Steel has announced that it has established a steel wire processing company in China. The processed steel wire will be used in high-quality springs for the automotive industry.
The new company Kobelco Spring Wire (Foshan) Co., Ltd (KSW), located in Foshan, Guangdong Province, will begin operations in the first half of 2013. KSW will have a monthly production capacity of 600 mt.
In recent years, major Chinese spring manufacturers have been commissioning new production lines adding new capacity to produce engine valve springs and other high-quality springs. KSW expects to supply the domestic market instead of focusing exports. Through this new company, Kobe Steel aims to meet the growing demand for high-quality steel wire in China.