Kobe Steel to begin aluminium sheet production in China early 2017

Japanese steel producer Kobe Steel is all set to start aluminium sheets output for the automotive industry in China in the first quarter of the next financial year, said company spokesperson Tatsuro Kanoh on Monday, June 11.

Kobelco Automotive Aluminium Rolled Products, Kobe Steel's wholly owned Chinese subsidiary started production on a trial basis in April 2016. The sample aluminium sheets manufactured by the company are to be sent for testing by global automakers ahead of commercial production.

Sample shipments have already begun and are awaiting certification of automakers in Europe, North America, and Japan, Kanoh informed.

The aluminium rolling plant in China is located in Tianjin Xiqing Economic Development Area in Tianjin city. It has a production capacity of 100,000 million tonnes per year in total of 5000 and 6000 series aluminium alloy sheets.

Kobe Steel owns an aluminium auto sheet production facility in Moka city in Tochigi prefecture near Tokyo, Japan. With a monthly production capacity of 30,000 million tonnes, the company dominates the aluminium auto sheets market in Japan. The sheets are used for manufacturing outer and inner panels of car bodies.

According to a noted market research firm, the global automotive aluminium market, driven by the demand for energy-efficient, lightweight cars, is expected to grow at a CAGR of 4.5 per cent during 2016-2020.

Kobe Steel also plans to launch automotive aluminium sheet production in the US in 2017.

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