Kobe Steel to Boost Production Capacity at Japanese Steel Powder Plant

SEATTLE (Scrap Monster): Chūō-ku, Kobe-headquartered major Japanese steel manufacturer Kobe Steel announced its plans to make major investment at its steel powder plant located in Takasago, Hyogo Prefecture. The investment of nearly 1.8 billion Japanese yen is expected to significantly boost the plant’s production capacity. The works are expected to commence soon and are expected to extend for at least two years.

According to company press release, the proposed investment is aimed at ensuring continuous and stable supply of steel powders to customers. Of late, there has been a tremendous demand for the company’s steel powders, renowned for its high purity, high compressibility and high density. The projected jump in automotive production over the medium-to-long term is likely to keep the demand for steel powders firm, it noted.

The investment is expected to increase steel powder at the plant from its current levels of 96,000 metric tons per year to nearly 110,000 metric tons per year. This will further solidify its position as the leading powder producer in Japan. Incidentally, the company currently enjoys almost 50% market share of steel powders in the country.

As part of the announced expansion, Kobe Steel will install a new reduction furnace to support higher treatment temperatures. In addition, a new mixer unit will be installed, in order to increase the production capacity of SEGLESS range of powders. It must be noted that the company has been in the steel powder business since 1968.