Japanese steelmaker Kobe Steel, Ltd has announced that its Chinese steel wire processing joint venture, Kobelco Spring Wire (Foshan) Co., Ltd (KSW), located in Foshan, Guangdong Province, has started operations. Kobe Steel owns a 50 percent stake in KSW, while Shinko Wire Company, Ltd. and Suncall Corporation each have a 25 percent stake.
Established in January 2012, KSW will produce processed steel wire with a monthly capacity of 600 mt to be used in high-quality springs for the automotive industry. KSW began production of steel wire for high-quality springs in February and it will go into commercial production after obtaining product approval from its customers.
According to Kobe Steel, China, the world's largest auto market, produced about 19 million cars in 2012. Production is forecast to expand considerably over the medium- to long-term future, reaching 28 million cars in 2020. Consequently, world automakers have been expanding their production bases in China, raising the need for the local sourcing of parts. To meet this demand, the world's major spring manufacturers have been actively adding new production lines and increasing their capacity to make engine valve springs and other high-quality springs. This, in turn, has increased demand for high-quality steel wire, the material from which the springs are made.
