Kobe Steel has fully taken over L&T Kobelco Machinery (LTKM), which designs and manufactures machinery for producing car and construction equipment tires, including rubber mixers and twin screw roller head extruders.
Established in 2010, LTKM was formerly a joint venture between Larsen & Toubro (51%) and Kobe Steel (49%). Kobe Steel and its Singapore subsidiary, Kobelco Machinery Asia, together now own 100% of LTKM, which will be rebranded in May to Kobelco Industrial Machinery India (KIMI). Through its rebirth, Kobe Steel aims to increase LTKM’s sales in India, Southeast Asia and Europe.
Since its establishment, LTKM has been jointly managed by Larsen & Toubro as a strategic partner to develop sales and promote product and brand penetration. Demand for tire and rubber machinery has been increasing in recent years, due to the rising production of vehicles. Emerging markets, including India, have been growing 5% or more per year.
It was in light of these circumstances that the parent companies agreed to turn LTKM into a wholly owned subsidiary of Kobe Steel to enable more flexible management and better marketing, and to strengthen cost competitiveness from a production perspective.