December 03, 2008

Kobe Steel to spend USD 300 million on crankshaft capacity

Reuters reported that Japan’s Kobe Steel Ltd would spend JPY 30 billion (USD 300 million) to boost its production capacity of marine crankshafts amid strong demand for ships.

It will introduce a new production line at its Takasago Works in central Japan, raising production capacity of crankshafts by 40% to 50% by April 2010 from the current level.

Kobe said that demand for crankshafts used in tankers, bulk carriers and other ships remains extremely tight due to a strong flow of orders for ships from emerging economies, with Japanese, South Korean and Chinese shipbuilders holding three to four years' worth of back orders.

Kobe is the world's top producer of large crankshafts used in tankers and other big ships.