Kobe Steel boosts compressor production in China
Kobe Steel has increased production capacity at its compressor plant in Shanghai, China, with a new manufacturing line starting commercial operations.
Approximately 74 million yuan (600 million yen) was invested in the expansion.
The Kobe Steel Group manufactures standard compressors in Japan, the US and China. Starting up in 2005, it marketed 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 it in full operation.
To meet the growing market, Kobe Steel 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 within China, with 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.
The company also has its own development unit that enables it to design products adapted to the local market.
Standard compressors are widely 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 also a highly important issue as compressors consume a large amount of electricity. Kobe Steel’s standard screw compressors have received wide acclaim worldwide for their high efficiency, the company said.
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