Kobe Steel to open company in China for tire and rubber machinery

Kobe Steel, Ltd. announces that in April it will open a company in China to sell tire and rubber machinery and provide after-sales service.

Called Kobelco Machinery System Engineering Qingdao Co., Ltd. (or KMQ), the new company in Qingdao, Shangdong Province will supply rubber mixers, twin screw roller head extruders and tire testing machines used in the manufacture of tires for cars, construction equipment and other rubber products. Kobe Steel has invested 2 million yuan (about 40 million yen) in KMQ.

World tire production, in terms of tons, has been increasing more than 3 percent annually in recent years, with China making up a nearly 40 percent share, according to the Japan Automobile Tyre Manufacturers Association. With automobile demand anticipated to continue growing in China, tire production of approximately 520 million units in that country in 2015 is forecast to increase to about 650 million units in 2020, reported trade magazine Tire Technology International.

Demand for manufacturing equipment for automobile tires is also anticipated to grow. Kobe Steel has to date supplied over 250 units of tire and rubber machinery to China, and the need for after-sales service is also high. To capture growing customer needs, Kobe Steel established KMQ. In addition to tire and rubber machinery, KMQ will also handle Kobe Steel’s menu of plastic processing machinery.

The establishment of KMQ will contribute to expanding sales in China as well as further strengthen Kobe Steel’s position. Regarded as the top manufacturer of rubber mixers, Kobe Steel is aiming for a 50-percent share of the world market.

Kobe Steel’s Machinery Business anticipates achieving overall sales of approximately 1 billion yen for its tire and rubber machinery in fiscal 2020. Expanding worldwide, Kobe Steel’s tire and rubber machinery business currently has manufacturing and sales bases in four locations: Japan, the United States, China and India.