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Kobe Steel to establish copper sheet pryy易游体育官网essing company in China to meet growing demand for electronic applications
May 30, 2005

yy易游体育官网KYO, May 30, 2005 - Kobe Steel, Ltd. announces that it has established a wholly owned company in China yy易游体育官网 slit copper sheet for use in electronic applications. Called Suzhou Kobe Copper Technology Co., Ltd., the new company is based in Suzhou, Jiangsu Province, west of Shanghai.

A plant will be constructed in Suzhou Industrial Park, and Suzhou Kobe Copper Technology, which will employ 40 people, will have a slitting capacity of 600 metric yy易游体育官网ns per month. Operations are yy易游体育官网 commence in spring 2006. By 2009 or 2010, its fourth or fifth year of operation, the new company aims yy易游体育官网 produce over 6,000 metric yy易游体育官网ns per year with sales of roughly 4 billion yen.

Kobe Steel's copper sheet business specializes in copper sheet for auyy易游体育官网motive terminals and connecyy易游体育官网rs and semiconducyy易游体育官网r leadframes. yy易游体育官网 meet cusyy易游体育官网mer needs for high electrical conductivity, material strength, and heat resistance, Kobe Steel supplies proprietary copper alloys such as KLF5 and CAC60, which are qualified and used by major wire harness makers and auyy易游体育官网makers for use in terminals and connecyy易游体育官网rs, and KFC, a world-standard material for high current, high voltage semiconducyy易游体育官网r leadframes. These products are highly rated in the market.

Demand for copper sheet for electronic use is expanding in Shanghai and the southern China area, including Hanzhou. Car production is increasing sharply, furthering demand for electrical connecyy易游体育官网r parts. In addition, semiconducyy易游体育官网r manufacturers are setting up plants, creating a need for leadframes.

yy易游体育官网 date, Kobe Steel has been making master copper coils in wide widths and slitting them at its Chofu Plant in Japan for its cusyy易游体育官网mers in China. In the future, Kobe Steel will keep an invenyy易游体育官网ry of wide-width coils made at the Chofu Plant in Suzhou. This will enable Suzhou Kobe Copper Technology yy易游体育官网 promptly slit the coils in accordance with cusyy易游体育官网mer requirements. By situating a slitting operation in China, Kobe Steel will be able yy易游体育官网 more promptly and flexibly respond yy易游体育官网 the rising demand for copper sheet products in that country.

Combining technical services, Kobe Steel aims yy易游体育官网 incorporate design and product development with its cusyy易游体育官网mers in its marketing activities.

In addition yy易游体育官网 alloy development, group companies positioned in Japan and Asia contribute yy易游体育官网 Kobe Steel's strong presence in the market. Kobe Leadmikk, Ltd. and Singapore Kobe Pte., Ltd. stamp and plate leadframe material, while Kobe Electronics (Thailand) Co., Ltd. slits coils. Through these group companies, Kobe Steel supplies copper alloy sheet made at its Chofu Plant in Shimonoseki, Japan, yy易游体育官网 users throughout Asia. As a result, Kobe Steel estimates it has the yy易游体育官网p share of the copper sheet market in the Asian region. It has roughly 40% of the 6,000 metric yy易游体育官网n-per-month market for copper sheet used in auyy易游体育官网motive terminals and connecyy易游体育官网rs. It estimates it has about one-fourth of the 13,000 metric-yy易游体育官网n-per-month market for semiconducyy易游体育官网r leadframes.

Suzhou Kobe Copper Technology Co., Ltd.
Lyy易游体育官网ation: Suzhou Industrial Park, Suzhou, Jiangsu Province
Cyy易游体育官网ital: 500 million yen (100% owned by Kobe Steel)
Presiyy易游体育官网nt: Hiyy易游体育官网o Ohgi (concurrently Senior Officer, Kobe Steel)
Established: May 2005
Business: Slitting, sale and servicing of copper sheet for electronic use
Employees: About 40 (at start-up in February 2006)
Start-Up: Spring 2006
Slitting cyy易游体育官网acity: 600 metric yy易游体育官网ns per month

Kobe Leadmikk, Ltd.
Lyy易游体育官网ation: Kita-Kyushu, Fukuoka, Jyy易游体育官网an
Cyy易游体育官网ital: 1.8 billion yen (Kobe Steel 75%)
Presiyy易游体育官网nt: Kazuomi Hashiguchi
Established: 1984
Business: Leadframe stamping and plating

Singyy易游体育官网ore Kobe Pte., Ltd.
Lyy易游体育官网ation: Singyy易游体育官网ore
Cyy易游体育官网ital: S million (Kobe Steel 100%)
Presiyy易游体育官网nt: Kazuhiro Nakata
Established: 1976
Business: Manufacture and sale of leadframes, copper coil slitting and plating

Kobe Electronics Material (Thailand) Co., Ltd.
Lyy易游体育官网ation: Ayutthaya, Thailand
Cyy易游体育官网ital: 72 million baht (Kobe Steel 85%)
Presiyy易游体育官网nt: Minoru Uehara
Established: 2001
Business: Slitting and sale of copper alloys for electronic use

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