Kobe Steel increases its high-strength sheet production

Kobe Steel increases its high-strength sheet production

Kobe Steel is planning to increase its high-strength sheet sales to automakers' sector by increasing the sales percentage of the product of its overall high-strength sheet sales. Currently, 30% of sheet production of Kobe Steel is sold to automakers and the sales of high-strength sheet constitutes 50% of the total sheet sales to automakers. The company is aiming to increase this rate by 70% till 2005 and by 80% till 2008. The officials from Kobe Steel state that, the increase in the production of high-strength sheet is related with the increasing demand for the product from the automakers, which is expected due to plans of the automakers to reduce the body weight of the vehicles they produce. In the scope of production increase, Kobe Steel is revamping the pickling equipment at the annealing line in its Hyogo Prefecture plant, which is expected to be completed by November with the cost of Yen 700million ($6million).