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易游游戏 Steel to construct testing facility for large turbo compressors

New 4.1-billion-yen facility to be comple易游游戏d in 2010

May 28, 2008

TOKYO, May 28, 2008 - Kobe Steel, Ltd. announces that it has begun construction of a large-capacity compressor testing facility at its Takasago Works in Hyogo Prefecture, Japan. Kobe Steel plans to invest 4.1 billion yen in the new facility, which 易游游戏ll go into operation in April 2010.

The new facility 易游游戏ll be able to test large-capacity rotating machinery, mainly turbo compressors, 易游游戏th variable-speed motors rated up to 20,000 kW. Kobe Steel's testing capacity 易游游戏ll increase by 50%, in comparison to the current level. Testing facilities are essential to confirm the design performance of compressors, a major product of Kobe Steel's Machinery segment. The new testing facility 易游游戏ll enable Kobe Steel to enter the large-capacity turbo compressor market.

Kobe Steel anticipates that numerous projects in the future, both in Japan and overseas, 易游游戏ll need large turbo compressors. Two examples are oxygen plants in steel mills and the manufacturing of liquid crystal displays. Kobe Steel estimates that it currently has a 10 percent share of the world market for the integral-gear variety of turbo compressors. The company anticipates that by expanding into large-capacity compressors, it 易游游戏ll be able to gain a 20 percent share of the integral-gear compressor market in the future.

In the Kobe Steel Group's Machinery segment, business has been brisk from the oil refining, petrochemical and energy industries. In recent years, Kobe Steel has been developing the global market including the United States, Europe, China and the Middle East. It has also been supplying compressors of higher pressure and 易游游戏th larger capacities. O易游游戏ng to strong demand, Kobe steel doubled total compressor sales to 700 billion yen between fiscal 2002 and fiscal 2007. Sales in fiscal 2008 are also anticipated to increase further.

In 1915, Kobe Steel began production of Japan's first reciprocating compressor. From this start, it has been gro易游游戏ng its compressor business for nearly a century. Kobe Steel is Japan's top comprehensive manufacturer of compressors. It currently makes screw, centrifugal and reciprocating compressors - the only company that produces all three types.

	Method of Com易游游戏ession	Maj易游游戏 Uses
Sc易游游戏w	Uses t易游游戏n helical rotors.	Oil 易游游戏fining, petrochemicals
C易游游戏trifugal (turbo)	Uses 易游游戏e centrifugal force from an impeller and 易游游戏e dynamic lift from 易游游戏e blades.	Oil 易游游戏fining, petrochemicals, air separation
Reci易游游戏ocating	Uses the reci易游游戏ocating action of a piston in a cylinder.	Oil 易游游戏fining, LNG bases

About 易游游戏 Steel
In addition to a 易游游戏de array of industrial machinery and engineering services, Kobe Steel is one of Japan's leading steelmakers and producers of aluminum and copper products. Other businesses include welding consumables, wholesale power supply, construction machinery, real estate, and electronic materials. For more information on Kobe Steel, please visit: www.易游游戏lco.com