Japanese steelmaker Kobe Steel has announced that it has reached an agreement to expand the production capacity of its Chinese wire rod processing joint venture, Kobe Special Steel Wire Products (Pinghu) Co. (KSP), with the other equity holders Shinsho Corporation, Osaka Seiko Co., Meihoku Kogyo Co., Metal One Corporation and Kyodo Shaft Co.
KSP will invest 1.8 billion JPY ($17,7 million) in the expansion, with the new capacity expected to be commissioned in July 2015. Production capacity will increase from the current 2,500 metric tons per month to 3,500 metric tons per month.
KSP increased its production capacity in 2012, but as the Chinese market is anticipated to continue growing in the future, it has decided that it will be necessary to further increase capacity ahead of expanding demand.