Kobe Steel says it plans to increase the production capacity of its subsidiary in China, manufacturing aluminium forgings for automotive suspensions with investment totalling JPY4.5bn.
Kobe Steel will install an additional forging press, as well as construct melting and casting equipment at Kobe Aluminium Automotive Products (China). Total investment is anticipated to reach JPY4.5bn and operations are to begin in March 2013.
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Kobe Aluminium Automotive Products (China) or KAAP China was established in September, 2010 in Suzhou, Jiangsu Province. The first phase of the plant is currently under construction and is anticipated to begin volume production in August 2012.
In recent years, automobile companies in China have been increasing production rapidly and there also is a growing need for lighter vehicles to meet stricter fuel consumption regulations.
As a result, demand for aluminium suspensions in China is rising faster than originally estimated and orders at KAAP China are anticipated to also increase, says the company.
Due to this demand, Kobe Steel says it will install an additional 6,300-metric-ton mechanical forging press and heat treatment equipment at KAAP China. The company will also add upstream operations including a melting furnace and casting line.
If demand continues to rise, the company will consider adding more capacity.
