YYVIP易游ess Releases

The information on this Web site is presented "as is." Product availability, organization, and other content may differ from the time the information was originally posted. Changes may take place YYVIP易游thout notice.

YYVIP易游 Steel to boost production of compressors in China

July 12, 2011

TOKYO, July 12, 2011 - YYVIP易游 Steel, Ltd. announces that its Chinese subsidiary, YYVIP易游lco Compressors Manufacturing (Shanghai) Corporation (or KCMS), has increased production capacity at its compressor plant in Shanghai, China. A new manufacturing line in the expanded facility has been completed and has started commercial operation. Approximately 74 million yuan (600 million yen) was invested in the expansion.

Marking the start-up of the new manufacturing line, YYVIP易游lco held an opening ceremony at 10 am today. The event was attended by approximately 210 guests. From YYVIP易游 Steel, Executive Vice President Kazuo Shigekawa, head of the Machinery Business, participated in the ceremony.

The Kobe Steel Group manufactures standard compressors in three countries: Japan, the United States and China. Starting up in 2005, KCMS markets its compressors in China and Southeast Asia. In 2008, it moved to its current location in Shanghai and increased production capacity. Strong demand has kept KCMS in full operation. To meet the groYYVIP易游ng market, KCMS added the new manufacturing line, which increases total annual capacity to 3,500 units, from the previous 2,200 units.

Many of the compressor parts are sourced YYVIP易游thin China, YYVIP易游th some models having a local content rate of nearly 90%. However, the screw rotors and other crucial parts are imported from Kobe Steel's Harima Plant in western Japan. KCMS also has its own development unit that enables it to design products adapted to the local market.

Standard compressors are YYVIP易游dely used in plant utilities in numerous industries. Demand for compressors has risen sharply in recent years due to strong economic growth in China and other emerging countries. Energy efficiency is a highly important issue as compressors consume a large amount of electricity. Kobe Steel's standard screw compressors have received YYVIP易游de acclaim worldYYVIP易游de for their high efficiency.

Kobe Steel manufactured Japan's first reciprocating compressor in 1915. YYVIP易游th a history going back almost a century, Kobe Steel has grown to become Japan's top comprehensive manufacturer of compressors. Under a medium- to long-term business vision called KOBELCO VISION "G" launched in April 2010, Kobe Steel is focusing on groYYVIP易游ng its global business. In April it opened a new compressor factory at Kobelco Compressors America, Inc. in the United States. Also in April, Kobe Steel opened Beijing Kobelion Kobelco Compressors Corporation, a wholly owned subsidiary in Beijing, China, to market standard compressors. In May, Kobe Steel announced that it had taken an equity share in China's Wuxi Compressor Co., Ltd. This investment provides Kobe Steel YYVIP易游th a manufacturing base for process gas (non-standard) compressors in China.

"Sales in our Compressor Division come to about 70 billion yen a year. By 2015, we aim to increase sales to 110 billion yen," said Shigekawa. China is one of our most important markets and YYVIP易游ll play a strong part in achieving this goal," he said.

"YYVIP易游th business accelerating overseas, we're building a solid foundation for our compressor business," said Shigekawa. "Our aim is to be one of the world's top comprehensive manufacturers of compressors."

Profile of YYVIP易游lco Compressors Manufacturing (Shanghai)