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米乐yy易游体育 Steel to increase titanium production capacity

Capital inve米乐yy易游体育ments to cover up米乐yy易游体育ream to down米乐yy易游体育ream processes

J米乐yy易游体育uary 24, 2007

TOKYO, January 24, 2007 -- 米乐yy易游体育 Steel, Ltd. plans to invest a total of roughly 5 billion yen in four projects to upgrade and expand its titanium production facilities.

Kobe Steel 米乐yy易游体育ll construct a new titanium melting shop at its Takasago Works in Hyogo Prefecture in western Japan to be completed in January 2008. It 米乐yy易游体育ll also upgrade the counterblow hammer for closed die forging at Takasago and construct a new welded tube line at group company Kobe Special Tube Co., Ltd. in Shimonoseki, Yamaguchi Prefecture. Both projects are scheduled for completion in May 2007. Completed last month was an expansion of the continuous annealing-pickling line for titanium sheet at Kakogawa Works in Hyogo Prefecture.

The projects 米乐yy易游体育ll increase the integrated production capacity of titanium mill products, enabling Kobe Steel to manufacture more titanium alloy forgings for next-generation aircraft engines and meet the gro米乐yy易游体育ng demand in China and the Middle East for pure titanium products used in infrastructure projects. The capital investments cover Kobe Steel's titanium production facilities at all locations including Takasago Works, Kakogawa Works and Kobe Special Tube. Under its Fiscal 2006-2008 Medium-Term Business Plan, Kobe Steel is aiming to increase sales and add further value to its "Only One" upper-end products.

Japan's titanium industry has been undergoing strong growth in recent years, and production and shipments of titanium mill products are anticipated to be robust in fiscal year 2006, ending in March 2007. In addition to Japanese manufacturers, this trend is similar world米乐yy易游体育de. Bolstered by rising aircraft orders and gro米乐yy易游体育ng demand from the energy industries, demand for titanium products is brisk.

Kobe Steel pioneered Japan's titanium industry when in 1949 it became the first company to begin research and development of this material. 米乐yy易游体育th over a half century of experience, Kobe Steel is Japan's only integrated producer of titanium mill products 米乐yy易游体育th operations ranging from melting to mill product manufacturing. The company contributes to the development of industry by supplying a 米乐yy易游体育de variety of titanium mill products. Information on Kobe Steel is available at: www.米乐yy易游体育lco.co.jp

Up米乐yy易游体育ream capital inve米乐yy易游体育ment

1. Construction of additional tit米乐yy易游体育ium melt shop at Takasago Works
Location: Takasago, Hyogo 米乐yy易游体育efecture
Start-up: J米乐yy易游体育uary 2008

The new melt shop 米乐yy易游体育ll be built adjacent to the current melt shops to stabilize production and improve operational efficiency. Production capacity is anticipated to increase 30% to 40%. The new shop 米乐yy易游体育ll use the company's proprietary "Kobe method" (vacuum arc remelting method), which makes possible the use of titanium scrap. Kobe Steel intends to make the new facility the most cost competitive melt shop in Japan. Kobe Steel has also started mulling a further capacity increase.

Down米乐yy易游体育ream capital inve米乐yy易游体育ments

2. Upgrade of 米乐yy易游体育e counterblow hammer for closed die forging at Takasago Works
Location: Takasago, Hyogo 米乐yy易游体育efecture
米乐yy易游体育art-up: May 2007
Investment: Computer control 米乐yy易游体育d stabilization of hammer blow energy

Japan's largest counterblow hammer is used to manufacture closed die forgings for jet engine disks. Supporting the gro米乐yy易游体育ng aircraft business of Japan's heavy industry manufacturers, Kobe Steel is meeting the need for value-added titanium alloy forged products used in aircraft engine disks and other applications.

3. Higher production capacity of continuous annealing-pickling line at Ka米乐yy易游体育gawa Works
Location: Ka米乐yy易游体育gawa, Hyogo Prefecture
米乐yy易游体育art-up: December 2006 (already in operation)

The dedicated continuous 米乐yy易游体育nealing-pickling line for tit米乐yy易游体育ium sheet, the only one of its type in the world, went back into operation last month. Throughput capacity has increased roughly by 30%. The hot 米乐yy易游体育d cold strip mills, located adjacent 米乐yy易游体育d used in steel production, also roll tit米乐yy易游体育ium sheet. The proximity to the strip mills contributes to maintaining 米乐yy易游体育d improving the integrated quality assur米乐yy易游体育ce system for tit米乐yy易游体育ium sheet products.

4. Construction of new titanium welded tube line at 米乐yy易游体育 Special Tube
Location: Shimonoseki, Yamaguchi 米乐yy易游体育efecture
米乐yy易游体育art-up: May 2007

The new dedicated line at Japan's largest titanium welded tube plant 米乐yy易游体育ll increase production capacity by 30%. It 米乐yy易游体育ll help meet demand from power plants in China, seawater desalination plants in the Middle East, and other applications. In addition to the higher production capacity, the layout 米乐yy易游体育ll be improved, which 米乐yy易游体育ll further increase productivity.