Kobe Steel will deploy new forging presses and smelting casting equipment for its Chinese subsidiary Kobe Aluminum Automotive Products Co., Ltd., with a total investment of up to 4.5 billion yen (approximately US$57.71 million).
Kobe Aluminum Automotive Products Co., Ltd. was established in September 2010 in Suzhou, China. The first phase of the factory's construction work is still underway. It is expected that it will be officially put into production in August next year.
In recent years, the Chinese automobile industry has developed rapidly. In order to meet strict fuel standards, the demand for light vehicles is gradually increasing. The increase in demand for aluminum suspension in the Chinese market far exceeds expectations. To meet market demand, Kobe Steel decided to increase its aluminum forging production capacity.
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