Kobe Steel’s wire rod processing venture in China to increase production capacity

OREANDA-NEWS. Kobe Steel, Ltd. and partners Sugita Wire, Ltd. and China’s Fasten Group have agreed to increase the production capacity of their Chinese joint venture that processes special steel wire rod into wire.

The joint venture, Jiangyin Sugita Fasten Spring Wire Co., Ltd. (also called JYSF), will install high-frequency induction tempering equipment and another wire drawing machine to produce oil-tempered wire at its plant in Jiangyin, Jiangsu Province. Plans call for mass production to commence in October 2016.

JYSF was established in 2005 to produce and sell oil-tempered wire for cold-coiled suspension springs. Full-scale operation began in 2007. JYSF has been providing a stable supply of this high-quality wire in China, where the automotive market is anticipated to grow over the medium to long term.

As the need for lighter automobiles increases due to stricter environmental regulations, demand for advanced oil-tempered wire for cold-coiled suspension springs is anticipated to expand in the future. The installation of induction tempering equipment will make possible rapid quenching and tempering to produce high-strength wire.

This capacity increase will strengthen Kobe Steel’s supply system for oil-tempered wire for cold-coiled suspension springs and will help capture the growing demand for this high-strength material in China.