OREANDA-NEWS. March 09, 2012. Kobe Steel, Ltd. announces that it plans to increase its production capacity of titanium alloys for the aerospace sector and commercially pure titanium for general industry. Investments are anticipated to total 7.5 billion yen, of which 1.5 billion yen is allocated for the joint venture Japan Aeroforge, Ltd.

Kobe Steel plans to construct a new ring rolling mill and install heat treatment and inspection equipment for large forged products at its Takasago Works in Takasago, Hyogo Prefecture in western Japan. Group company Kobe Special Tube Co., Ltd., a 100% owned subsidiary of Kobe Steel, has already completed a titanium welded tube line in Shimonoseki, Yamaguchi Prefecture, also in western Japan.

Titanium demand is anticipated to expand over the medium- to long-term future owing to strong worldwide demand for civilian aircraft and infrastructure demand in emerging countries, such as for power generation and desalination plants. Japan's total shipments of titanium mill products reached 19,358 metric tons in 2011 (ended December 2011), the second highest since 2008. Of this amount, a record 13,245 metric tons were exported.

Through the capital investments, Kobe Steel will be able to increase and improve its production capacities for ring products for aircraft and large forgings made of titanium alloys, as well as welded tube made of commercially pure titanium. The additional capacity will enable Kobe Steel to enhance business opportunities for the growing titanium market.

In September last year, Kobe Steel developed precoated titanium sheet and high heat transfer titanium sheet for use in plate heat exchangers. Expanding its production capacity and strengthening its ability to meet user needs, Kobe Steel's Titanium Division plays an important role in contributing to the company's medium- to long-term business vision, KOBELCO VISION "G."

Kobe Steel pioneered the production and commercial application of titanium in Japan, when in 1949 it became the first company to begin research on this lightweight material. Kobe Steel is Japan's only integrated producer of titanium mill products with operations ranging from melting to mill product manufacturing. The company supplies numerous titanium products to a wide variety of industries.