On April 18, Japanese steel producer Kobe Steel announced that it plans to establish a company in June to sell welding consumables and provide sales support and maintenance services for welding robot systems in India.
To be called Kobelco Welding India Pvt. Ltd. (KWI), the company will be located in Gurgaon, Haryana state, about 30 km southwest of New Delhi. KWI will be capitalized at INR 5 million (about JPY 9 million).
Kobe Steel will hold an 80 percent share in KWI, while group companies Kobe Welding (Singapore) and Japanese welding consumable manufacturer Taseto Co. Ltd will each hold 10 percent.
According to Kobe Steel, demand for welding consumables is growing significantly in India. As many power plants are planned to be constructed, demand for welding products in the energy field is expected to grow.
In addition, Kobe Steel's welding business intends to develop new sources of wire rod and fluxes, the raw materials used to make welding consumables. To strengthen its cost competitiveness, KWI needs to find new suppliers of raw materials and support procurement.