Kobe Steel is to open a subsidiary in China at the cost of RMB2m (approximately ¥40m).
Kobelco Machinery System Engineering Qingdao (KMQ) in Shangdong province will supply rubber mixers, twin screw roller head extruders and tire testing machines used in the manufacture of tires for cars, construction equipment and other rubber products.
World tire production in terms of tons has reportedly been increasing more than 3% annually in recent years, with China making up a nearly 40% share, according to the Japan Automobile Tyre Manufacturers Association.
Demand for manufacturing equipment for automobile tires is also anticipated to grow. Kobe Steel has to date supplied over 250 units of tire and rubber machinery to China, and the need for after-sales service is also high.
Kobe Steel’s machinery business anticipates achieving an overall sales increase of approximately ¥1bn for its tire and rubber machinery in fiscal 2020. Expanding worldwide, Kobe Steel’s tire and rubber machinery business currently has manufacturing and sales bases in four locations: Japan, USA, China and India.
March 22, 2016