1. We provide reliable and advanced technologies, products and services that satisfy customers. The Kobe Steel Group believes that its products and services can only earn the trust of consumers when the Group itself—including its manufacturing capabilities and corporate culture—is deserving of that trust.
2. We support each employee in developing his or Corporate her abilities, while respecting mutual cooperation Philosophy within the Kobe Steel Group. Diversity is vital to the Kobe Steel Group’s strength as a unified organization. We believe input from a diverse range of people helps to strengthen the Group. We aim to be a corporation where employees respect the rights and opinions of each other while working together toward a common goal.
3. Through continuous efforts for innovative change, we aim to enhance our corporate values. It is important to meet changes in the business environment with speed and ingenuity. The Kobe Steel Group has a proven track record in innovating with the times. In order to maintain this success and strengthen the Group’s foundation, we believe in proactively greeting new challenges in the business environment.
Group Brand
“KOBELCO” is the unified brand name of the Kobe Steel Group. The Kobe Steel Group offers distinctive, trustworthy products and technologies in a wide variety of fields, including materials, machinery and electric power. The entire Group strives to ensure that people throughout the world recognize KOBELCO as the brand of a trustworthy corpo- rate group.
01 CONTENTS
03 Message from the President 05 Group Profile 07 Corporate Strengths 09 Main Domestic Locations 11 Main Overseas Locations 13 Medlum- to Long-Term Business Vision of the Kobe Steel Group 19 Technical Development 21 Recent Topics 23 Business Segments 23 Iron & Steel 25 Welding 27 Aluminum & Copper 29 Machinery 31 Engineering 35 Construction Machinery 37 Electric Power 39 Other Businesses 40 Corporate Social Responsibility 41 Environmental Management 42 Initiatives Through Rugby 43 Work Environment 45 Social Contributions 47 History of Kobe Steel 49 Overseas Group Companies 54 Kobe Steel Business Locations
02 Message from the President
Contributing to society and industry through During the second stage of the vision, the Fiscal 2013-2015 Medium-Term Business Plan, we worked to restructure our manage- integrated management of diverse businesses ment base by strengthening profitability, focusing on the Iron & Steel Since our founding in 1905, the Kobe Steel Group has contributed Business and improving our financial standing, as well as to lay the to the development of society and industry by offering superior groundwork for stable profits and growth. products and technologies. Our businesses currently span an Specifically, in the Iron & Steel Business, we decided to consoli- impressive range of fields. One of the Kobe Steel Group’s greatest date upstream operations at Kakogawa Works, establish a steel wire advantages is its ability to provide integrated management of its rod manufacturing base in Thailand, and form a manufacturing base numerous businesses. in China to make cold-rolled, high-strength steel. In the Aluminum & The Kobe Steel Group also features a wide lineup of distinctive Copper Business, we established an automotive panel material and innovative products and technologies. Many of these products manufacturing base in China. In the Construction Machinery Busi- hold the number one share in the world market. The diversity of the ness, we set up a plant in the United States to make excavaters. technologies we have amassed over the many years is the founda- And in the Electric Power Business, we decided to build two new tion on which we enhance our manufacturing capabilities and serves power plants—one in Moka, Tochigi Prefecture and one on the as the driving force of our corporate activities. Through distinctive grounds of the Kobe Works’ blast furnace. manufacturing, we will continue to create new value and contribute In this fiscal year, we embarked on our new Fiscal 2016-2020 to progress in industry and society in the years to come. Group Medium-Term Management Plan. This is the first step in our new business vision for strengthening growth strategies through the Fiscal 2016-2020 Medium-Term Management Plan three core business areas of materials, machinery and electric and KOBELCO VISION “G+” power and for establishing a more robust business structure under KOBELCO VISION “G+.” The plus represents our desire to carry on In April 2010, the Kobe Steel Group launched the KOBELCO from the previous medium- to long-term management vision to VISION “G” medium- to long-term management vision. The “G” in further strengthen initiatives in future growth fields. the vision’s name stands for many elements, including “Global,” We aim to contribute to society, while also expanding business “Group” and “Growth.” Under this vision, we have been pursuing by capitalizing on our competitive advantage and increasing the level proactive global expansion and have worked to create products and of the original added value we offer. services only possible through our Group.
03 With a new vision geared toward the future, the Kobe Steel Group has set its sights on global growth.
Hiroya Kawasaki Chairman, President, CEO and Representative Director Kobe Steel, Ltd.
New growth strategies focus on three core areas: struction Machinery and Kobelco Cranes in April 2016, in addition to restructuring our operations in the Chinese market. Through this materials, machinery and electric power merger we aim to expand marketing in Europe and North America In the materials businesses, we are pursuing initiatives for weight and strengthen our presence in the global market. savings in transportation and increased profitability in the Iron & In the electric power business, we are pursuing growth aimed at Steel Business. The Kobe Steel Group handles a variety of metal achieving stable profits by 2022. In addition to our existing Kobe products, including steel, aluminum, titanium and magnesium. Some Power Plant, we are moving forward with new power supply proj- of our greatest strengths, which we expect to bring considerable ects in Moka, Tochigi Prefecture and on the grounds of the Kobe growth, are our materials technologies, such as high-strength steel Works’ blast furnace. and aluminum, and our ability to propose multimaterial solutions through joining and other technologies. In the aviation field, where Aiming for global growth supported by a stable demand is expected to grow, along with strengthening our current upstream processes for titanium manufacturing, we will also enter management base and expavd downstream operations. Together with our aluminum Strengthening our corporate management base is indispensable to and magnesium offerings, we aim to become the leading supplier in ensuring that new business strategies will be implemented accord- the Asian market. We also aim to increase profitability in the Iron & ing to plan. The Kobe Steel Group is pursuing a variety of initiatives, Steel Business by concentrating upstream processes at Kakogawa including to strengthen corporate governance, promote diversity, Works and by investing further in facilities. improve working styles by encouraging the use of paid vacation In the machinery businesses, we are pursuing energy and infra- days reduce long working hours, and effectively utilize our diverse structure initiatives and working to increase profitability in construc- range of human resources. We are also focused on activities for tion machinery. In compressors, we aim to enter new territory in the contributing to society, including forest maintenance projects and large-capacity centrifugal compressor market and strengthen our community outreach around our plants. supply network for standard compressors. In the promising growth The medium- to long-term vision, KOBELCO VISION “G+,” is an field of hydrogen-related businesses, we established a new compre- important initiative toward establishing a stronger framework for the hensive test center for hydrogen stations, and aim to strengthen Group’s future. As a global corporation, we are always ready to take research and development and establish differentiated technologies. the inintiative, meet new challenges and aim for greater growth. In the construction machinery business, we merged Kobelco Con- October 2016
04 Group Profile
Company Profile
Company name: Kobe Steel, Ltd. Employees Group brand: Consolidated: 36,338* Founded: September 1, 1905 Nonconsolidated: 10,833* (excluding seconded personnel) Incorporated: June 28, 1911 Subsidiary companies: 212* Capital: 250,930,033,900 yen* Affiliated companies: 56*
Chairman, President and CEO: Hiroya Kawasakii * As of March 31, 2016
Organizational Structure
President and CEO Iron & Steel Business
Head Office Executive Vice President and Representative Director Yoshinori Onoe* Senior Managing Executive Officers Board of Directors Yukimasa Miyashita Executive Vice President and Makoto Mizuguchi Representative Director Naoto Umehara Koichiro Shibata Senior Managing Executive Officer Managing Executive Officers Hiroaki Matsubara Executive Council Takafumi Morichi Yoshihiro Oka Managing Executive Officers Executive Officers Shoji Miyazaki Kazuaki Kawahara Hajime Nagara Satoshi Nishimura Management Committee Koji Yamamoto Executive Officers Yasushi Okubo Audit & Supervisory Committee Yoshihiko Katsukawa Welding Business
Technical Development Group Director, Senior Managing Executive Office Fusaki Koshiishi* Directors Executive Officer Akira Yamamoto Chairman, President, CEO and Representative Director Hiroya Kawasaki Director, Managing Executive Officer Executive Vice Presidents and Representative Directors Toshiya Miyake Aluminum & Copper Business Yoshinori Onoe Akira Kaneko Executive Vice President and Representative Director Akira Kaneko* Naoto Umehara Branch Offices Managing Executive Officers Hiroshi Kato Directors, Senior Managing Executive Officers Takumi Fujii Shohei Manabe Executive Officer Nobuaki Isono Fusaki Koshiishi Sales Offices Mitsugu Yamaguchi Director, Managing Executive Officer Machinery Business Toshiya Miyake Director, Senior Managing Executive Officer Mitsugu Yamaguchi* Director (part time) Takasago Works Kazuhide Naraki Senior Managing Executive Officer Takao Ohama Outside Directors Executive Officer Masamichi Takeuchi Takao Kitabata Overseas Offices Hiroshi Ochi Engineering Business Directors, Audit & Supervisory Committee Members Hiroaki Fujiwara Director, Senior Managing Executive Officer Shohei Manabe* Yoshimasa Yamamoto Managing Executive Officers Kazuto Morisaki Outside Directors Hiroshi Ishikawa Takao Kitabata Hiroshi Ochi Outside Directors, Audit & Supervisory Committee Members Electric Power Business Takashi Okimoto Yoshiiku Miyata Managing Executive Officer r Jiro Kitagawa* Hidero Chimori * Head of business unit As of June 22, 2016
Fiscal 2015 Sales Mix
Consolidated net sales: ¥1,822.8 billion Machinery: Segment sales include intersegment sales. (unit: billions of yen) 159.0 (8.4%) Aluminum & Construction Iron & Steel: 665.8 (35.4%) Copper: Machinery: 345.4 (18.4%) 366.2 (17.8%) Electric Power: ¥662.6 billion (36.4%) Overseas net sales: Welding: 92.2 (4.9%) 76.7 (4.1%) Engineering: Nonconsolidated net sales: ¥979.0 billion Other Businesses: 131.7 (7.0%) 74.5 (4.0%)
05 Group Business Development
Barrier-Free Organization
Iron & Steel Welding Aluminum Machinery Engineering Construction Electric Other & Copper Machinery Power Businesses
Kakogawa Works Fujissawa Plant Mooka Plant Takasago Works Harima Plant Itsukaichi Factory Kobe Power Plant Kobe Works Ibaaraaki Plant Chhofu Works s Industrial (Kobelco Numata Factory Takasago Works Saiijo Plant Daaian Plant Machinery Plant Eco-Solutions) Ogaki Factory
s Steel Casting & Fukkuuchiyama Haatano Plant s Rotating Okubo Factory Forging Plant Plaant (Koobelco & Machinery Plant
s Titanium Plant Maaterials Copper s Equipment Plant Tube) s Steel Powder Harima Plant Plant Major Manufacturing Bases
s Steel wire rods s WWelding s Aluminum flat- s Tire/rubber s DRI processes s Hydraulic s Power supply s Real estate and bars matterials rolled products machinery s Upgraded Brown excavators s Hi-tech materials s s Steel sheets s WWelding s Aluminum/ Plastic processing Coal Process s Hydraulic mini s Superconducting s Steel plates syysttems magnesium machinery s Nuclear power- excavators products castings and s s Steel castings Metalworking related facilities s Environmental s High-pressure forgings and forgings machinery s CWD facilities/ recycling gas vessels s Aluminum s machinery s Titanium Advanced destruction s Senior citizens’ extrusions and technology s Crawler cranes s Steel powder s Steel structures/ homes fabricated equipment sabo facilities s Wheel cranes s Other products s Nonstandard s Urban transit
s Copper strips compressors systems s Copper tubes s Standard s Water treatment compressors facilities s Chemical s Cooling towers equipment s Waste treatment Major Products & Services s Energy equipment facilities s Chemical and food processing equipment s Environmental analysis
s Wire rod for s Covered welding s Aluminum s Rubber mixers/ s MIDREX® s Hybrid hydraulic s Sputtering valve/ electrodes automotive panel tire testing Process excavators targets for LCD suspension materials machines Interconnection s Flux-cored wires s ITmk3® Process s Large-sized springs s Aluminum s films (Kobelco s Non-copper- Plastic mixing building s Steel sabo dams Research s CHQ wire rod coated wires forgings for and pelletizing demolition for automobiles automotive systems s Flared seawalls machines Institute) s Welding materials suspensions s Water treatment s NMR s High-strength for energy s Nonstandard s Large-sized s Aluminum shapes facilities steel for industries screw crawler cranes superconducting automobiles for railway cars compressors s Cooling towers wires/magnets sWelding materials s Multi-dismantling s Automotive (Japan s Special film s Oil refining s Biogas upgrading machines for offshore bumper materials Superconductor coated steel structures reactors systems s eMag s Aluminum bottle Technology) sheet s LNG vaporizers s Fluidized-bed s Welding robot can stock s iNDr s Large ship systems for s Binary generators gasification and crankshafts s HDD aluminum melting furnaces structural steel disk materials s Spent fuel s s Titanium alloys s Welding equipment storage and PCB detoxification for aircraft s Copper strips for facilities for joining ship plates terminals and transport casks s Distinctive Products & Technologies Distinctive Products & REGARC™ process connectors s Copper strips for leadframes
06 Corporate Strengths
The Kobe Steel Group is a diversified enterprise with a unique business scope unparalleled in the world. Many people are familiar with Kobe Steel as a major steelmaking company, but as a diversified corporation with businesses in three core areas, the Kobe Steel Group offers even more. The three core areas consist of the materials businesses such as steel, aluminum, copper and welding; machinery businesses such as industrial machinery, construction machinery and engineering; and the electric power business. Founded in 1905, Kobe Steel has capitalized on the synergy across business segments in numerous fields for 111 years. Through our businesses we support industry, society and everyday life. The following are some of the innovative products and technologies that have allowed us to excel on the global stage.
Distinctive Products & Technologies
Wire rod for automotive engine valve springs High-strength steel sheet
Crankshafts Titanium Welding materials (FCW) Materials
© Rolls-Royce Aluminum automotive Aluminum forgings panel material for automotive suspensions Aluminum bottle can stock
Aluminum shapes for Leadframe materials railway cars
Materials: KOBELCO helps create lighter vehicles KOBELCO contributes The Kobe Steel Group contributes to lighter vehicles through products such as high-strength steel, which boasts some of the world’s highest to lifestyles tensile strengths, and aluminum automotive panel materivials, for which Kobe Steel holds 50 percent of the Japanese market, as well and society. as titanium products for aircraft. Our unique array of products enables us to propose multi-material solutions that combine steel, aluminum and welding.
07 Distinctive Products & Technologies
Nonstandard screw compressors Rubber mixers Reactors for oil refining
LNG vaporizers (ORV) MIDREX® Process Casks
Flared seawalls Hydraulic excavators Crawler cranes
Machinery
Electric Power One of the Largest Wholesale Power Generation Capacities in Japan
Kobe Power Plant Two new power plant projects underway
Machinery: Contributing to a hydrogen society Electric Power: KOBELCO creates energy Fuel cell vehicles (FCV) are seen as the “ultimate form In 2002, we entered the power supply business. Our 1.4 million kW Kobe of eco-friendly cars,” because they use hydrogen for Power Plant supplies 70 percent of Kobe City’s peak summertime power fuel and emit only water when driving. At Kobe Steel, demand, contributing to a more stable power supply for the region. Plans we offer equipment and total engineering solutions for are also underway for construction of new power plants in Moka (Tochigi hydrogen stations, which are integral to the creation of Prefecture) and at the site of the Kobe Works blast furnace. hydrogen infrastructure. We also supply materials for use in the vehicles themselves.
08 Main Domestic Locations
Kobe Steel, Ltd.
Iron & Steel Offices Kakogawa Works - Kakogawa, Hyogo Prefecture Kobe Head Office - Kobe, Hyogo Prefecture Research & Development Laboratory - Kakogawa, Hyogo Prefecture Tokyo Head Office - Shinagawa, Tokyo Kobe Works - Kobe, Hyogo Prefecture Osaka Branch Office - Osaka, Osaka Prefecture Welding Nagoya Branch Office - Nagoya, Aichi Prefecture Hokkaido Sales Office - Sapporo, Hokkaido Fujisawa Plant and Technical Center - Fujisawa, Kanagawa Prefecture Tohoku Sales Office - Sendai, Miyagi Prefecture Ibaraki Plant - Ibaraki, Osaka Prefecture Niigata Sales Office - Niigata, Niigata Prefecture Saijo Plant - Higashi-Hioshima, Hirroshima Prefecture Hokuriku Sales Office - Toyama, Toyama Prefecture Fukuchiyama Plant - Fukuchiyama, Kyoto Prefecture Shikoku Sales Office - Takamatsu, Kagawa Prefecture Aluminum & Copper Chugoku Sales Office - Hiroshima, Hiroshima Prefecture Moka Plant - Moka, Tochigi Prefecture Kyushu Sales Office - Fukuoka, Fukuoka Prefecture Chofu Works - Shimonoseki, Yamaguchi Prefecture Okinawa Sales Office - Naha, Okinawa Prefectur Daian Plant - Inabe, Mie Prefecture Takasago Works - Takasago, Hyogo Prefecture Machinery Research Laboratories Harima Plant - Kako-gun, Hyogo Prefecture Kobe Corporate Research Laboratories - Kobe, Hyogo Prefecture
Kobe Corporate Research Laboratories Chofu Fukuchiyama
Chugoku Saijo Plant Kobe Head Office Sales Office Research & Hokuriku Kyushu Sales Office Development Sales Office Laboratory Takasago
Kakogawa Daian Nagoya Harima Ibaraki Kobe Branch Office Shikoku Sales Office
Okinawa Sales Office Osaka Branch Office
Group Companies by Business Segment
Iron & Steel Welding Shinko Wire Company, Ltd. - Amagasaki, Hyogo Prefecture Hanshin Yosetsu Kizai Co., Ltd. - Okayama, Okayama Prefecture Shinko Bolt, Ltd. - Ichikawa, Chiba Prefecture Kobelco Welding Solution Co., Ltd. - Shinagawa, Tokyo Tesac Wirerope Co., Ltd. - Kaizuka, Osaka Prefecture JKW Co., Ltd. - Taito, Tokyo Nippon Koshuha Steel Co., Ltd. - Chiyoda Tokyo TASETO Co., Ltd. - Fujisawa, Kanagawa Prefecture KS Summit Steel Co., Ltd. - Koto, Tokyo Shinko Welding Service Co., Ltd. - Fujisawa, Kanagawa Prefecture Sakai Steel Sheets Works, Ltd. - Sakai, Osaka Prefecture Shinko Actec Co., Ltd. - Osaka, Osaka Prefecture Sanwa Tekko Co., Ltd. - Ama-gun, Aichi Prefecture Kobelco Robotics Service., Ltd. - Fujisawa, Kanagawa Prefecture Shinko Kenzai, Ltd. - Amagasaki, Hyogo Prefecture Aluminum & Copper Shinko Kohan Kako, Ltd. - Ichikawa, Chiba Prefecture OSAKA Titanium Technologies Co., Ltd. - Amagasaki, Hyogo Prefecture Toyotsu Nonferrous Center Corporation - Anjo, Aichi Prefecture Japan Aeroforge, Ltd. - Kurashiki, Okayama Prefecture Shinko-North Co., Ltd. - Kasumigaura, Ibaraki Prefecture Kansai Coke and Chemicals Co., Ltd. - Amagasaki, Hyogo Prefecture Shinko Aluminum Wire Co., Ltd. - Sakai, Osaka Prefecture Shinko Engineering & Maintenance Co., Ltd. - Kobe, Hyogo Prefecture Shinko Fab Tech, Ltd. - Shimonoseki, Yamaguchi Prefecture Shinko Slag Products Co., Ltd. - Kobe, Hyogo Prefecture Shinko Leadmikk Co., Ltd. - Kitakyushu, Fukuoka Prefecture Kobelco Steel Tube Co., Ltd. - Shimonoseki, Yamaguchi Prefecture Shinko Metal Products Co., Ltd. - Kitakyushu, Fukuoka Prefecture Kobelco Logistics, Ltd. - Kobe, Hyogo Prefecture Kobelco & Materials Copper Tube, Ltd. - Shinjuku, Tokyo Ceratechno Co., Ltd. - Akashi, Hyogo Prefecture Shinko Kanmon Sohgo Service Ltd. - Shimonoseki, Yamaguchi Prefecture Shinko Daian Sohgo Service Ltd. - Inabe, Mie Prefecture Shinko Moka Sohgo Service Ltd. - Moka, Tochigi Prefecture
09 Hokkaido Sales Office
Tohoku Sales Office Niigata Sales Office
Moka
Tokyo Head Office Construction Machinery Fujisawa Kobelco Construction Machinery Co., Ltd. - Shinagawa, Tokyo & Hiroshima, Hiroshima Prefecture Kobelco Construction Machinery (East Japan) Co., Ltd. - Ichikawa, Chiba Prefecture Kobelco Construction Machinery (West Japan) Co., Ltd. - Amagasaki, Hyogo Prefecture Kobelco Construction Machinery International Trading Co., Ltd. Machinery - Shinagawa, Tokyo Kobelco Compressors Corporation - Shinagawa, Tokyo Kobelco Cranes Trading Co., Ltd. - Shinagawa Tokyo Shinko Engineering Co., Ltd. - Ogaki, Gifu Prefecture Kobelco Construction Machinery Engineering Co., Ltd. Shinko Techno Engineering Co., Ltd. - Takasago, Hyogo Prefecture - Hiroshima, Hiroshima Prefecture Kobelco Shinwa Co., Ltd. - Akashi, Hyogo Prefecture Kobelco Training Services Co., Ltd. - Ichikawa, Chiba Prefecture Kobelco Air Water Cryoplant, Ltd. - Kobe, Hyogo Prefecture Shinko Inspection & Service Co., Ltd. - Takasago, Hyogo Prefecture Electric Power Shinko AirTech, Ltd. - Kobe, Hyogo Prefecture Kobelco Power Kobe, Inc. - Kobe Hyogo Prefecture Kobelco Power Moka, Inc. - Moka Tochigi Prefecture Engineering Industrial Services International Co., Ltd. - Kobe, Hyogo Prefecture Other Businesses Transnuclear, Ltd. - Minato, Tokyo Shinsho Corporation - Osaka, Osaka Prefecture & Chuo, Tokyo Kobelco Professional Service Co., Ltd. - Kobe, Hyogo Prefecture Shinko Real Estate Co., Ltd. - Kobe, Hyogo Prefecture Kobelco Eco-Solutions Co., Ltd. - Kobe, Hyogo Prefecture Kobelco Research Institute, Inc. - Kobe, Hyogo Prefecture Kobelco Eco-Maintenance Co., Ltd. - Kobe, Hyogo Prefecture Kobe Wing Stadium Co., Ltd. - Kobe, Hyogo Prefecture E.R.C. TAKAJO Co., Ltd. - Miyakonojo, Miyazaki Prefecture I.H.D. Center Co., Ltd - Kobe, Hyogo Prefecture TOYOTA ENVIRONMENT SERVICES CO., LTD. - Toyota, Aichi Prefecture Kobelco Systems Corporation - Kobe, Hyogo Prefecture Kakogawa Environment Service Co., Ltd. - Kakogawa, Hyogo Prefecture Kobelco Personnel Co., Ltd. - Kobe, Hyogo Prefecture Fukui Green Power Co., Ltd. - Ono, Fukui Prefecture Kobelco Business Support Co., Ltd. - Kobe, Hyogo Prefecture Shinko Engineering & Maintenance Co., Ltd (Plant Division) Kobelco Financial Center, Ltd. - Shinagawa Tokyo - Kobe, Hyogo Prefecture Japan Superconductor Technology, Inc. - Kobe, Hyogo Prefecture Kobe Heating and Cooling Supply Co., Ltd. - Kobe, Hyogo Prefecture Shinko Care Life Co., Ltd. - Kobe, Hyogo Prefecture Kobe Medical Care Partners Co., Ltd- Kobe, Hyogo Prefecture Shinko Industrial Co., Ltd. - Kurayoshi, Tottori Prefecture Kobelco Career Development Co., Ltd. - Kobe, Hyogo Prefecture Shinko Lease Co., Ltd. - Kobe, Hyogo Prefecture Shinko Research Co., Ltd. - Koto Tokyo (as of Octorber 2016)
10 Main Overseas Locations
UK Germany
Netherlands
South Korea
China
UAE
India Operating as a unified Group Thailand in the world market, we aim to create new value Vietnam and global growth. Singapore Malaysia
Indonesia 75 locations
Asia and Oceania
Iron & Steel Aluminum & Copper Kobe CH Wire (Thailand) Co., Ltd. - Thailand Singapore Kobe Pte. Ltd. - Singapore Australia Kobe Steel Asia Pte. Ltd. - Singapore Kobelco & Materials Copper Tube (Malaysia) Sdn. Bhd. - Malaysia Kobe Steel Asia Pte. Ltd. - Hong Kong Kobelco & Materials Copper Tube (Thailand) Co., Ltd. - Thailand Mahajak Kyodo Co., Ltd. - Thailand Kobe Precision Technology Sdn. Bhd. - Malaysia Kobe Wire Products (Foshan) Co., Ltd. - Guangdong, China Kobe Electronics Material (Thailand) Co., Ltd. - Thailand Jiangyin Sugita Fasten Spring Wire Co., Ltd. - Jiangsu, China Kobe Aluminum Automotive Products (China) Co., Ltd. - Jiangsu, China Kobe Special Steel Wire Products (Pinghu) Co., Ltd. - Zhejiang, China Kobelco Automotive Aluminum Rolled Products (China) Co., Ltd. - Tianjin, China Kobelco Spring Wire (Foshan) Co., Ltd. - Guangdong, China Suzhou Kobe Copper Technology Co., Ltd. - Jiangsu, China Kobelco Angang Auto Steel Co., Ltd. - Liaoning, China Kobelco Millcon Steel Co., Ltd. - Thailand Machinery Shinko Wire (Guangzhou) Sales Co., Ltd. - Guangdong, China Kobelco Compressors (Shanghai) Corporation - Shanghai, China Tesac Shinko Wirerope Consulting (Shanghai) Co., Ltd. - Shanghai, China Kobelco Compressors Manufacturing (Shanghai) Corporation - Shanghai, China Microfine Trading (Shanghai) Co., Ltd. - Shanghai, China Beijing Kobelion Kobelco Compressors Corporation - Beijing, China Kobelco Compressors (Malaysia) Ltd. - Malaysia Welding Kobelco Compressors (Thailand) Ltd. - Thailand Kobelco Welding Asia Pacific Pte. Ltd. - Singapore Kobelco Compressors (Vietnam) Ltd. - Vietnam Kobe Welding (Malaysia) Sdn. Bhd. - Malaysia Kobelco Compressors India Pvt. Ltd. - India Kobe MIG Wire (Thailand) Co., Ltd. - Thailand Wuxi Compressor Co., Ltd. - Jiangsu, China Thai-Kobe Welding Co., Ltd. - Thailand Shinwa Wood Works (Wuxi) Co., Ltd. - Jiangsu, China Kobe Welding of Korea Co., Ltd. - South Korea Yiyang Yishen Rubber Machinery Co., Ltd. - Hunan, China Kobelco Welding Marketing of Korea Co., Ltd. - South Korea Kobelco Machinery System Engineering Qingdao Co,. Ltd. - Shandong, China Kobelco Welding India Pvt. Ltd. - India Kobelco Machinery Asia Pte. Ltd. - Singapore Kobe Welding of Tangshan Co., Ltd. - Hebei, China Kobelco Machinery India Pte. Ltd. - India Kobe Welding of Qingdao Co., Ltd. - Shandong, China L&T Kobelco Machinery Pte. Ltd. - India Kobe Welding of Shanghai Co., Ltd. - Shanghai, China Kobelco Advanced Lube-system Asia Co., Ltd. - South Korea Engineering Midrex Metallurgy Technology Services (Shanghai) Ltd. - Shanghai, China Midrex Technologies India Pte. Ltd. - India Kobelco Eco-Solutions Vietnam Co., Ltd. - Vietnam
11 The Kobe Steel Group’s major overseas locations 16 countries 7 101 locations locations USA Europe and the Middle East 19 Welding locations Kobelco Welding of Europe B.V. - Netherlands North and South America Machinery Kobelco Machinery Europe GmbH - Germany Iron & Steel Kobelco Machinery Middle East FZE. - UAE PRO-TEC Coating Company - Ohio, USA Engineering Grand Blanc Processing, LLC – Michigan, USA Estado de Guanajuato, Mexico Midrex UK Ltd. - UK Kobelco CH Wire Mexicana, S.A. de C.V. – Welding Construction Machinery Kobelco Welding of America Inc. - Texas, USA Kobelco Construction Machinery Europe B.V. - Netherlands Kobelco Cranes Europe Ltd. - UK & Netherlands Aluminum & Copper UAE Kobelco Cranes Middle East FZE. - Kobe Aluminum Automotive Products, LLC - Kentucky, USA Kobelco Aluminum Products & Extrusions Inc. - Kentucky, USA Machinery Kobelco Advanced Coating (America), Inc. - Illinois, USA Kobelco Compressors Manufacturing Indiana, Inc. - Indiana, USA Brazil Kobelco Stewart Bolling, Inc. - Ohio, USA Kobelco Compressors America, Inc. - California, USA Construction Machinery Kobelco Machinery do Brazil Ltda. - Brazil Chengdu Kobelco Construction Machinery Group Co., Ltd. - Chengdu, China Engineering Chengdu Kobelco Construction Machinery Co.,Ltd. - Chengdu, China Midrex Technologies, Inc. - North Carolina, USA Chengdu Kobelco Construction Machinery Financial Leasing Ltd. - Chengdu, China Hangzhou Kobelco Construction Machinery Co., Ltd. - Zhejiang, China Construction Machinery Kobelco Precision Machinery Hangzhou Co., Ltd. - Zhejiang, China Kobelco Construction Machinery U.S.A. Inc. - Texas, USA Kobelco Cranes (Shanghai) Co., Ltd. - Shanghai, China Kobelco Cranes North America, Inc. - Texas, USA Kobelco International (S) Co., Pte. Ltd. - Singapore Ricon Private Limited - Singapore Other Business Kobelco Cranes South East Asia Pte. Ltd. - Singapore Kobe Steel USA Holdings Inc. - Delaware, USA Thai Kobelco Construction Machinery Ltd. - Thailand Kobe Steel International (USA) Inc. - New York, USA Kobelco Construction Equipment India Pvt. Ltd. - India Kobe Steel USA Inc. - New York, USA Kobelco Cranes India Pvt. Ltd. - India Kobe Steel USA Inc. - Michigan, USA Kobelco Construction Machinery Australia Pty. Ltd. - Australia Shinsho American Corporation - Michigan , USA P.T. Daya Kobelco Construction Machinery Indonesia - Indonesia Kobelco Construction Machinery Malaysia Sdn. Bhd. - Malaysia Kobelco Construction Machinery Vietnam Co., Ltd. - Vietnam Other Business Kobelco (China) Holding Co., Ltd. (China headquarters) - Shanghai, China Bangkok Office - Thailand Thai Escorp Ltd. - Thailand Kobelco Trading (Shanghai) Co., Ltd. - Shanghai, China Shanghai Shinsho Trading Co., Ltd. - Shanghai, China Suzhou Shinko-Shoji Material Co., Ltd. - Jiangsu, China Kobelco Precision Parts (Suzhou) Co., Ltd. - Jiangsu, China Shinsho Osaka Seiko (Nantong) Corporation - Jiangsu, China Beijing Oriental Shentong Expert Training Co., Ltd. - Beijing, China Kobelco Logistics (Shanghai) Ltd. - Shanghai, China (as of October 2016)
12 Medium- to Long-Term Business Vision of the Kobe Steel Group Medium- to Long-Term Business Vision of the Kobe Steel Group
Toward establishing a solid business enterprise in three core business areas:
Materials Machinery Electric Power
KOBELCO VISION “G+” launched in fiscal 2016, combines the current Medium-Term Management Plan and the vision of a business enterprise established in three core business areas The Kobe Steel Group launched its medium- to long-term business vision KOBELCO VISION “G” in April 2010. It was formulated with a focus on the Kobe Steel 'ROUPS DIRECTION FOR THE NEXT FIVE TO TEN YEARS OR IN OTHER WORDS ITS MEDIUM TO LONG TERM VISION 5NDER +/"%,#/ 6)3)/. h' v WE SUCCESSFULLY IMPLEMENTED THE &ISCAL n 'ROUP -EDIUM 4ERM "USINESS 0LAN AND IN FISCAL LAUNCHED THE &ISCAL n 'ROUP -EDIUM 4ERM -ANAGEMENT 0LAN 5NDER THIS management plan, we are enhancing the growth strategies underpinned by the three pillars of the materials businesses, machinery businesses and electric power business and promoting initiatives for KOBELCO VISION “G+” to establish a solid business structure.
KOBELCO VISION “G+”
Establish a business enterprise 1 KOBELCO VISION “G” in three core business areas
Phase 123Phase 2 Phase 3 Sustainable growth
Laying the Materials Capturing growth groundwork for markets on a global stability and growth Business expansion scale through Machinery in growth areas Materials “Only One” Machinery Electric power technologies, Electric power products and Re-building the services business base Stable profitability Strengthening the business base
Solid business base
FY2010 FY2013 FY2016 FY2020
1 KOBELCO VISION “G+”
s Against the backdrop of Japan’s aging population and production shift overseas, it is expected that domestic Medium- to Long-Term demand will generally decrease. Outlook for Business s /VERSEAS DEMAND MAINLY FROM EMERGING ECONOMIES WILL INCREASE s 4HE DEMAND STRUCTURE IS RAPIDLY CHANGING TOWARD A LOW CARBON SOCIETY Conditions (Operational constraints on domestic manufacturers, hybrid and electric vehicles, etc.)
Thorough pursuit of high-end “Only s 5NITE DIVERSE KNOWLEDGE AND TECHNOLOGIES TO CREATE THE +OBE 3TEEL 'ROUPS NEW “Only One” products. 1 One” products, technologies & services s )MPROVE CUSTOMER SATISFACTION BY DETERMINING AND MEETING CUSTOMERS CHANGING NEEDS TO PROVIDE BETTER PROD- ucts and technologies. s $EVELOP UPSTREAM AND DOWNSTREAM AREAS OF OUR CURRENT BUSINESSES TO DRAMATICALLY IMPROVE ADDED VALUE
Further improve manufacturing s Monozukuri-ryoku is the strength that provides reliable and advanced technologies, products and services 2 strengths eternally. Monozukuri-ryoku is also an engine for growth. s 7ORK ACROSS THE 'ROUP ON IMPROVING MONOZUKURI RYOKU NAMELY THE MANUFACTURING STRENGTHS THAT ARE THE +OBE Steel Group’s source of its competitiveness.
Further approach to growing markets s 3TRENGTHEN BUSINESS DEVELOPMENT IN GROWTH REGIONS FOCUSING ON EMERGING ECONOMIES 3 (growing regions & growing business fields) s Accelerate business undertakings in growth fields in Japan and overseas, including those involving the environ- ment, resources and energy.
13 Expansion in Growth Markets Leveraging the comprehensive s /RGANICALLY UNITE TECHNOLOGIES PERSONNEL INFORMATION KNOWLEDGE AND OTHER KEY FACTORS ACROSS ORGANIZATIONS 4 capabilities of the Kobe Steel Group and viewpoints to create new value. s Systematically nurture employees that can strengthen the business foundation of the Group, implement change, and promote global business development.
s "UILD A CORPORATE CULTURE FOR THE ENTIRE +OBE 3TEEL 'ROUP THAT IS HIGHLY SENSITIVE TO COMPLIANCE !CTIVELY FULFILL 5 Contributions to society our social responsibility centered on contributing to local communities and environmental conservation.
Image of the Kobe Steel s Has a presence in the global market Group in the s -AINTAINS A STABLE PROFIT STRUCTURE AND A STRONG FINANCIAL FOUNDATION Next Five to Ten Years s 0ROSPERS TOGETHER WITH ITS SHAREHOLDERS BUSINESS PARTNERS EMPLOYEES AND SOCIETY
Fiscal 2013–2015 Medium-Term Business Plan
Looking toward realizing its vision for the Kobe Steel Group in fiscal 2020, under KOBELCO VISION “G,” Kobe Steel positioned the Fiscal 2013−2015 Medium-Term Business Plan to rebuild the Group’s business foundation over a three-year period. The plan aimed to strengthen profitability primarily in the steel business and improve the financial performance of the Group. At the same time, the three years were seen as a period for steadily laying the foundation for stable profits and business growth, in preparation for fiscal 2016 and beyond. Kobe Steel began reforming the structure of its steel business, strategically expanding the machinery businesses and growing the electric power business. Through these measures, Kobe Steel promoted the Group’s diversified business operations and expanded the elec- tric power business, in addition to continuing its current two pillars of the materials businesses and the machinery businesses, in order to build a stable profit base.
Financial Performance
Fiscal 2015 Targets*1 FY2012 FY2013 FY2014 FY2015
Ordinary income 80.0-100.0 billion yen (¥18.1 billion) 85.0 billion yen 101.6 billion yen 28.9 billion yen (loss)
D/E ratio*2 1.3 times 1.75 times 1.11 times 0.88 times 1.10 times*3 (achieved 1.0 times ahead of schedule) *1: Targets as of May 29, 2013 *2: Interest-bearing debt ÷ stockholders’ equity *3: Including early procurement of borrowings for FY2016 (90 billion yen) D/E Ratio: 0.97 times (excluding early procurement of borrowings) Actual Results from Initiatives
Promoted measures to lay the groundwork for stability and growth
Consolidating upstream operations Implementing more investments for further cost cuts s #ONSOLIDATING UPSTREAM OPERATIONS AT +AKOGAWA 7ORKS s Further strengthening of hot metal treatment capacity (Installing second in fiscal 2017 dephosphorization furnace) Structural reform of – Equipment orders, field and other work are generally the steel business progressing as planned – Gaining re-approval from customers due to changes in upstream operations s Established a joint venture in China to manufacture and s Established a company in China to manufacture New investments in sell cold-rolled high-strength steel sheet for automobiles and sell aluminum sheet for automotive body the materials businesses to s %STABLISHED A JOINT VENTURE IN 4HAILAND TO MANUFACTURE panels secure sales volume in and sell special steel wire rod s 2EINFORCED PRODUCTION CAPACITY OF ALUMINUM growth areas and regions forged suspension products for automobiles in Signing ceremony for THE 5NITED 3TATES Kobelco Millcon Steel s Built a construction machinery plant for hydraulic s Built a new comprehensive testing center for hydrogen stations Strategic expansion of excavators in North America s %XPANDED SALES BASES FOR COMPRESSORS OVERSEAS "RAZIL )NDIA 4HAILAND the machinery businesses s #ONSTRUCTING A TEST FACILITY FOR LARGE SIZED RECIPROCATING compressors Growing the electric power s 0ROMOTING CONSTRUCTION OF NEW POWER PLANTS ON THE SITE OF +OBE 7ORKS BLAST FURNACE AND IN -OKA 4OCHIGI 0REFECTURE business
Measures implemented to rebuild the business base s After implementing measures to strengthen the profitability of the steel business, including capital investment and cost cuts at the production site level, profitability improved ¥42.0 billion compared with fiscal 2012. s +OBE 3TEEL PROMOTED SECURITIZATION AND REDUCED INVENTORY TO IMPROVE ITS FINANCIAL STANDING GENERATING A TOTAL OF c BILLION IN CASH BETWEEN FISCAL 2013 and 2015 and surpassing its target of ¥120.0 billion.
14 Medium- to Long-Term Business Vision of the Kobe Steel Group
Fiscal 2016–2020 Medium-Term Management Plan
!LONG WITH THE &ISCAL n 'ROUP -EDIUM 4ERM -ANAGEMENT 0LAN +OBE 3TEEL STARTED INITIATIVES FOR A NEW VISION CALLED KOBELCO VISION “G+.” 4HE NEW VISION AIMS TO FURTHER STRENGTHEN THE 'ROUPS GROWTH STRATEGY CENTERED ON THE THREE CORE BUSINESS AREAS OF MATERIALS MACHINERY AND ELECTRIC POWER TO ESTABLISH A SOLID BUSINESS ENTERPRISE +OBE 3TEEL PLANS TO FOCUS ITS MANAGEMENT RESOURCES IN GROWING FIELDS ANTICIPATED TO EXPAND OVER THE MEDIUM TO LONG TERM SUCH AS WEIGHT SAVINGS IN TRANSPORTATION AS WELL AS ENERGY AND INFRASTRUCTURE +OBE 3TEEL PLANS TO INCREASE THE ORIGINAL ADDED VALUE OF THE +OBE 3TEEL 'ROUP "Y ACHIEVING A STRONG COMPETITIVE EDGE +OBE 3TEEL AIMS TO EXPAND AND GROW ITS BUSINESSES WHILE CONTRIBUTING TO SOCIETY )N FISCAL THE LAST YEAR OF THE PLAN WE AIM TO ACHIEVE AN 2/! OF OR HIGHER AND MAINTAIN A $% RATIO OF TIMES OR LOWER 7E WILL ACHIEVE IMPROVED PROFITABILITY CAPITAL EFFICIENCY WHILE ENSURING FINANCIAL SOUNDNESS
Image of Business Performance Target business portfolio (Profit distribution by business) -ATERIALS (fiscal 2015 excludes steel)
-ACHINERY (fiscal 2015 excludes Kobelco Construction Machinery) %LECTRIC POWER -ATERIALS 20-30 40-50 %LECTRIC POWER
/THER ROA 5 3TEEL (fiscal 2015) OR MORE +OBELCO #ONSTRUCTION -ACHINERY (fiscal 2015) 3TABLE EARNINGS IN ELECTRIC POWER GROWTH IN MATERIALS AND MACHINERY
-ACHINERY /RDINARY INCOME 30-40 28.9 billion yen Image of business enterprise based on three core business areas FY2020 !FTER START UP OF NEW ELECTRIC POWER PROJECTS CURRENTLY IN PROGRESS 2/! ORDINARY INCOME LOSS TOTAL ASSETS FY2015 results $% RATIO INTEREST BEARING DEBT STOCKHOLDERS EQUITY
Growth strategies for the three core business areas
Materials Machinery Electric Power
) )NITIATIVES FOR WEIGHT SAVINGS IN TRANSPORTATION ) ) )NITIATIVES IN THE FIELDS OF ENERGY AND )NITIATIVES AIMED AT STABLE PROFITABILITY IN THE AUTOMOTIVE AND AIRCRAFT FIELDS INFRASTRUCTURE ELECTRIC POWER BUSINESS )) 3TRENGTHENING PROFITABILITY IN THE STEEL BUSINES ))) 3TRENGTHENING PROFITABILITY IN THE CONSTRUCTION MACHINERY BUSINESS
Strengthening the business base Common I) Strengthening corporate II) Securing and developing human III) Strengthening technology development strategies governance resources and monozukuri (manufacturing) capabilities
Materials Businesses
I. Initiatives for Weight Savings in Transportation (1) Automotive field
7ITH FUEL CONSUMPTION AND #/2 REGULATIONS BECOMING STRICTER IN THE AUTOMOTIVE FIELD THE NEED FOR LIGHTER AUTOMOBILES IS ANTICIPATED TO GROW IN THE FUTURE WHILE ENHANCED SAFETY REQUIREMENTS ARE INCREASING )N ADDITION TO RAISING THE COMPETITIVENESS OF ULTRA HIGH STRENGTH STEEL AND ALUMINUM NOTED FOR THEIR OUTSTANDING BALANCE OF WEIGHT SAVINGS AND COST +OBE 3TEEL PLANS TO EXPAND ITS SHARE OF THE GLOBAL MARKET AND FIRMLY SECURE GROWTH IN THE AUTOMOTIVE FIELD LEVERAGED BY ITS ORIGINAL SOLUTION TECHNOLOGIES FOR MULTI MATERIALS THE JOINING OF DISSIMILAR METALS ETC +OBE 3TEEL WILL CONSIDER STRATEGIC INVESTMENTS ON THE SCALE OF c BILLION TO STRENGTHEN MOTHER FACTORIES IN *APAN THE SOURCE OF ITS COMPETITIVENESS AND GROWTH INITIATIVES IN OVERSEAS MARKETS .ORTH !MERICA AND #HINA
15 Strategy for Each Menu and the Company’s Competitive Edge s 3TRENGTHENING BUSINESS WITH *APANESE AUTOMAKERS Common strategies s 0ROMOTING INITIATIVES AIMED AT %UROPEAN AND 53 AUTOMAKERS IN GROWTH AREAS .ORTH !MERICA #HINA
Special Steel Ultra-high strength steel (UHSS) Sales expansion in overseas growth markets Focusing on weight-savings of car frame by using UHSS with high formability The Company’s competitive edge · 'LOBAL SUPPLY STRUCTURE FOR HIGH QUALITY The Company’s competitive edge SPECIAL STEEL · 4RACK RECORD EXPERTISE AS A LEADER IN · 3ECONDARY PROCESSING BASES BOTH AT HOME 5(33 AND ABROAD · 'LOBAL SUPPLY STRUCTURE
Aluminum Sheet Responding to growing global demand for aluminum panels Aluminum forgings The Company’s competitive edge Capture expanding global demand · 4ECHNOLOGICAL EDGE IN ALLOY The Company’s competitive edge TECHNOLOGY ETC · $EVELOPMENT DESIGN CAPABILITIES IN · (IGH SURFACE QUALITY CULTIVATED DIEMOLD AND FORGING TECHNOLOGIES THROUGH CAN STOCK · 4HREE COUNTRY STRUCTURE COVERING *APAN THE 53 #HINA
Aluminum extrusions Addressing bumper/frame materials on a global basis, using 7xxx series Kobe Steel’s Multi-Material Technologies high-strength aluminum alloy 4O MEET GROWING DEMAND FOR LIGHTER VEHICLES +OBE 3TEEL LEVERAGES THE ADVANTAGES INHERENT TO BEING ONE OF THE FEW COMPANIES WORLDWIDE INVOLVED IN BOTH THE STEEL AND ALUMINUM INDUSTRIES AS WELL AS THE WELDING BUSINESS TO PROMOTE THE DEVELOPMENT OF The Company’s competitive edge MULTI MATERIAL TECHNOLOGIES THAT UTILIZE THESE MATERIALS AND TECHNOLOGIES 7E DEVELOP TECHNOLOGIES THAT BRING TOGETHER DIFFERENT · (IGH STRENGTH ALLOY FOR LARGE WEIGHT MATERIALS IN UNIQUE AND INNOVATIVE WAYS AND ARE CURRENTLY PROPOSING SOLUTIONS TO AUTOMOBILE MANUFACTURERS SAVINGS · "UMPER DESIGN TECHNOLOGY
(2) Aircraft field )N THE AIRCRAFT FIELD WHICH IS EXPECTED TO GROW +OBE 3TEEL PLANS TO STRENGTHEN UPSTREAM OPERATIONS MELTING FORGING AND CASTING FOR ITS TITANIUM ALUMINUM AND MAGNESIUM PRODUCTS )T WILL ALSO PROMOTE RESEARCH AND DEVELOPMENT NECESSARY FOR ENTRY AND EXPANSION INTO DOWNSTREAM OPERATIONS MACHINING SURFACE TREATMENT AND PAINTING "Y ESTABLISHING AN INTEGRATED SYSTEM FOR UPSTREAM AND DOWNSTREAM OPERATIONS +OBE 3TEEL WILL BE ABLE TO MEET USER NEEDS BY BUILDING A COMPLETE SUPPLY CHAIN IN *APAN AIMING TO BECOME A SUPPLIER WITH A PRESENCE IN !SIA
Trends in the aircraft field and Kobe Steel’s menu
Trends in demand Kobe Steel’s menu
The number of aircraft in operation will nearly double in the next 20 years. q 4ITANIUM (19,900 in 2014 37,100 in 2034) ,ARGE FORGINGS FOR AIRFRAMES LANDING s 4HE NUMBER OF LARGE AND SMALL AIRCRAFT WILL INCREASE SHARPLY IN !SIA GEARS ROTORS AND NON ROTOR PARTS FOR s 4HE AIRCRAFT MARKET IN WAS AROUND TRILLION YEN -ATERIALS AROUND TRILLION YEN JET ENGINES Number of jets Forecast for the number of major jets in operation 40,000 North America Europe Asia-Pacific Other 37,100 35,000 30,000 25,000 q !LUMINUM -AGNESIUM 20,000 19,900 &ORGINGS FOR AIRFRAMES LANDING GEARS 15,000 #ASTINGS AND FORGINGS FOR JET ENGINES 10,000 5,000 0 2014 2020 2025 2034 *Created internally based on data from the Japan Aircraft Development Corporation
Future Initiatives
)N ADDITION TO THE UPSTREAM PROCESSES WE ARE CONTINUING TO REINFORCE MELTING TO CASTING AS WELL AS FORGING WE ARE PROMOTING 2$ AIMED AT INTRODUCING AND EXPANDING DOWNSTREAM PROCESSES Manufacturing process of aircraft parts Customers Surface treatment, Raw materials Melting Casting, Forging Machining Painting !SSEMBLY 4IER
Titanium Aluminum, Magnesium 0ROMOTE RESEARCH AND DEVELOPMENT TO INTRODUCE MACHINING FOR 0ROMOTE RESEARCH AND DEVELOPMENT OF MACHINING AND SURFACE TREATMENT LARGE FORGINGS TO EXPAND MENU FOR MACHINED PARTS 2ESEARCH AND DEVELOPMENT PERIOD UNTIL THE END OF FISCAL
16 Medium- to Long-Term Business Vision of the Kobe Steel Group
II. Strengthen Profitability of the Steel Business (Fiscal 2015 Fiscal 2020 Impact from improved profitability) In addition to consolidating upstream operations to Kakogawa Works in fiscal 2017 (cost reductions of 15 billion yen per year or more), Kobe Steel plans to implement additional profit improvement and on-site cost reductions (over 30 billion yen per year). Together with growth in the transportation field (over 25 billion yen), these initiatives are expected to increase profits.
Image of Improved Profitability of the Steel Business (Unit: in billions of yen) Depreciation Capital investment, reduced costs costs at the production site -15.0 Reduction in level, and reduced raw steel output materials procurement costs +25.0 -10.0 Consolidated upstream operations at Kakogawa Other risks Works in fiscal 2017 after suspending blast ©Rolls-Royce -10.0 furnace operations at Kobe Works. Growth in the - Automobiles (ultra-high strength steel, transportation − Operations are proceeding according to plan. special steel) -20.0 +30.0 field - Aircraft (titanium) 40.0 Ordinary income (loss) - Ships (steel plate, steel castings − in the steel business, and forgings) 30.0 excluding temporary Additional factors +15.0 measures to Increase profits through both growth in the improve profitability 3.0 Consolidated transportation field and measures to FY 2015 upstream improve profitability FY2020 operations
Machinery Businesses
I. Initiatives in the Energy & Infrastructure Fields s To expand the compressor business, Kobe Steel plans to enter the market for large-sized centrifugal compressors in the nonstandard compressor business. Kobe Steel plans to open one of the world’s largest test facilities in April 2017 for this purpose. In addition, Kobe Steel plans to expand its standard compressor business through global development, strengthened product competitiveness and strengthened manufacturing infrastructure, aiming to establish a position as the top group in Asia. s In the hydrogen-related business, Kobe Steel aims to strengthen its competitiveness in the domestic and overseas markets and expand sales of units for hydrogen stations by constructing a comprehensive test center for hydrogen stations and carrying out demonstration tests on hydrogen stations to establish differentiated technologies.
Nonstandard compressors
Basic policy New domain: Enter the large-sized centrifugal compressor market Requirements for market entry
Kobe steel’s Screw Performance Top class in the world product menu compressors 3 Single-shaft Production capacity Track record in large units in 400,000 Nm /h class centrifugal Reciprocating compressors Competitive edge Cost reduction by also taking a strong yen into account compressors Verification of quality Verification by testing at a large-scale facility Integrally geared of final product [Small to centrifugal Internally geared centrifugal compressor medium- compressors The market for integrally geared Construction of one of the world’s largest test facilities Nonstandard capacity] compressors is growing due to the Output: 40 MW Completion: April 2017 compressor [Large-capacity] great need for large-capacity, market Around high-pressure and high-efficiency units 1 trillion yen The current market is dominated by Focus on capturing the Asian market two European companies. where Kobe Steel has an edge
Creating a track record for the coming hydrogen society
Initiatives of the Kobe Steel Group New comprehensive test center for hydrogen stations Expand sales of units for hydrogen stations · Test station-related machinery based on various criteria · Compact design for compressors, refrigeration · Product development that addresses laws and regulations as well as market needs compressors, etc. · Lower costs and establish differentiated technologies · Total engineering capability for hydrogen Demonstration testing of renewable energy hydrogen station Strengthen stations Manufacture CO2-free hydrogen with renewable energy for use in hydrogen stations competitive edge Increase share in association with the Tokyo (utilize technology from Kobelco Eco-Solutions Co., Ltd.) Olympics Differentiated technologies, product menu Utilize U.S. base: Conduct sales activities using track record in Japan
17 II. Strengthen Profitability of the Construction Machinery Business In the Chinese excavator business, Kobe Steel plans to take decisive action on structural change to strengthen profitability by reviewing production capacity and promoting cross sourcing by reviewing the functions of two locations (supplying machines and components to Japan, the United States and Southeast Asia and maintaining capacity utilization). In April 2016, the U.S. excavator plant started up. Sales are anticipated to expand in Europe, the United States and India. In addition, through the merger of Kobelco Construction Machinery and Kobelco Cranes on April 1, 2016, Kobe Steel aims to establish a strong business base and a company with a global presence. (Global market share for excavators: 10%. Global market share for small to medium-sized crawler cranes: 40%. Global market share for large-sized crawler cranes: 15%.)
Image of Improved Profitability in the Construction Machinery Business (Unit: in billions of yen) Merger of Kobelco Construction Machinery and Kobelco Cranes (Merged company started in April 2016) Global top 10 Market fluctuation risks Sales risks Target for -5.0 +7.0 fiscal 2020 Start up of excavator plant in the U.S. (Operations started in April 2016) Location: Spartanburg, South Carolina +5.0 Crane business Production capacity:1,800 units/year (enter large-crane U.S. market, etc.) Ordinary Profit (Loss) from +10.0 Europe Other Global market share Increase 30.0 Kobelco Construction Machinery India fluctuating of excavators 10% market share or more + Maintain presence factors Kobelco Cranes Excluding Temporary Factors in Japan, +15.0 Southeast Asia Global market share of cranes 4.0 Rebuild the Establish a strong business base that can follow Small and medium-size 40% FY2015 China business the changing environment FY2020 Large-size 15% +Increase sales Aiming to Be in the Global Top 10 (excludes China)
Electric Power Business
Kobe Steel plans to continue the stable operation of its Kobe Power Plant, and is proceeding with two new power generation projects in Moka and Kobe. In fiscal 2022, Kobe Steel will have a total power generation capacity of 3.95 million kW, establishing a stable profit base.
Initiatives for stable profits in the electric power business
· Secure maximum profits through stable operations of the Kobe Power Plant Establish a stable profit base · Complete the Moka project and achieve smooth start-up Achieve cost-competitiveness through · Steadily promote the Kobe project cutting-edge facilities
3.95 million kW No. 3 & 4 units in Kobe to begin operations 2.65 million kW [Pulverized coal-fired, ultra-supercritical pressure power generation (USC)] No. 1 & 2 units in Moka to begin operations 1.4 million kW [Gas turbine combined cycle using city gas] Continued stable operation of No. 1 & 2 units in Kobe [Pulverized coal-fired, supercritical pressure power generation (SC)]
Kobe Power Plant FY2019 FY2020
Strengthening the Business Base Financial Strategy s Strengthening Corporate Kobe Steel plans to transition to a company with an audit and supervisory committee, review IIn principle, the basic policy is to finance large Governance the members of the board of directors, establish independent outside directors meetings, strategic investments and regular investments and strengthen the business execution system to strengthen corporate governance. that support the business base by business s Securing and Cultivating Promoting diversity and implementing changes in working styles, Kobe Steel will focus on cash flows. However, to maintain financial Human Resources creating a safe, employee-friendly working environment. In addition, Kobe Steel aims to discipline when the business environment secure and cultivate employees who will drive growth in the Kobe Steel Group. worsens, while steadily carrying out growth investments, Kobe Steel will consider cash s Strengthening Technology Kobe Steel plans to undertake the creation of products and processes that provide customer generation measures such as asset sales Development and value through differentiated technologies that strengthen the competitiveness of major products targeting a maximum of 100 billion yen, Manufacturing and in the automotive, aerospace and energy fields. In addition, by strengthening product improvements in working capital and other quality, on-site capabilities and data utilization, Kobe Steel plans to strengthen its production measures. infrastructure and raise the level of its monozukuri-ryoku (manufacturing capabilities). .
18 Technical Development We aim to create distinctive products and technologies and strengthen manufacturing capabilities through Group coordination. The Kobe Steel Group brings basic and cutting-edge technologies developed by the Technical Development Group together with the technologies of the individual business units closely linked to customers and production. This enables Kobe Steel to create distinctive products and technologies as well as boosts its manufacturing capabilities in such fields as materials, machinery, the environment, energy, and electronics. Under the 2016-2020 Medium-Term Management Plan, we aim to strengthen technical development in order to support growth strategies. We are working to develop differentiated technologies that will maximize profits by strengthening the competitiveness of major products and to create products and processes that will realize value for our clients.
Research & Development
The Materials Research Laboratory contributes to competitiveness and the creation of new products in each of our businesses, with research based on four technological fields: materials processing, materials design, mechanical working, and surface control. In the materials businesses, the laboratory develops new products by increasing the performance and functionality of materials and surfaces, and helps optimize manufacturing processes. In machinery-related businesses, the laboratory utilizes its expertise in materials to help create differentiated products. The laboratory also strives to cultivate new business through use of materials technology.
Materials sReducing and refining control sInclusion/slag control Processing sSolidification analysis and control sSpecial melting process Inclusion form control Materials Research Laboratory Materials sStructure/property prediction and control sMicrostructure control Design sNano-structure analysis sFatigue and fracture Nano-structure analysis
Mechanical sRolling, forging and extrusion sNumerical process simulation and Working sCutting and polishing process design Numerical simulation of cutting
Corrosion resistant and environmentally Thin film materials Surface s s friendly materials Control sTribological material design sFace/interface control Embrittlement analysis
At the core of the Mechanical Engineering Research Laboratory are the fields of strength and structure, dynamics and acoustics, fluid and heat transfer, combustion, chemistry, collision, advanced joining/advanced simulation technology, and testing and measurement. The laboratory increases the performance of products, improves processes, streamlines design and develops new products and technologies in fields such as machinery, materials, automotive and energy.
Strength & sStrength analysis of mechanical sMaterial process simulation Structural products sStrength and reliability Engineering sStructural design evaluation Large-scale structure analysis
sNew sound insulation structure Dynamics & sVibration analysis and control development Acoustics sAcoustics analysis and control Mechanical sMeasurement using sound and vibration Acoustics analysis Engineering Research Fluid, Thermal sFluid/heat transfer analysis and control sHigh temperature reaction and & Combustion Laboratory sMaterial process simulation combustion control Technologies sAdvanced fluid measurement Waste energy recovery
Chemical sOrganic coating sTribology and detergency 流体A Technologies sSeparation and purification 流体B Reaction/interface control
Multi-Material sCollision performance appraisal sDissimilar joining Structure Design sFracture prediction on high-strength sMetal adhesive joining & Joining materials Collision simulation
Topics
Kobe Steel Receives Award for World's Most Powerful NMR Device NMR devices create powerful magenetic fields that allow us to analyze the molecular structures of substances in detail.Four companies, including the Kobe Steel Electronics Research Laboratory and the National Institute for Materials Science (NIMS), received the 2016 ‚ Science and Technology Award from the Ministry of Education, Culture, Sports, Science and Technology (MEXT) for the world s most powerful NMR device, capable of producing magnetic fields of 1,020 MHz. This new technology is expected to contribute to development in the medical and materials fields.
19 The Production Systems Research Laboratory utilizes its advanced measurement, control, production planning and data analysis technologies. The laboratory contributes to improved competitiveness and profitability for the Kobe Steel Group by enhancing and innovating production systems. It also utilizes original system technology to develop a range of services in our machinery and other businesses.
Nondestructive inspection Production control logistics s Control Process control Systems s Instrumentation s sMeasurement for sData visualization/data Production Technology sMachine control Engineering Technology industrial equipment/process science Systems measurement Research
Laboratory Real-Time Control
+Network
Controller technology for industrial machines Optimal scheduling in large-scale processes Ultrasonic inspection
The Electronics Research Laboratory possesses core technologies in areas such as thin film materials, microfabrication, superconducting materials and superconducting magnets, contributing to the competitiveness of the Kobe Steel Group primarily in fields such as nanotechnology, the environment and energy. Additionally, the laboratory uses electromagnetic design, electronic control and other related technologies to develop new products for the power electronics field and to cultivate new businesses.
Sputtering target materials Thin Film s Materials sDeposition and microfabrication Electronics sThin film devices Electrodes for OLEDs Sputtering target Research Laboratory sSuperconducting wires Superconductors sElectromagnetic design
NbTi wire Nb3Sn wire
Power sMotor/inverter design Electronics sControl system Motor design Design analysis
The Coal & Energy Technology Department undertakes the development of upgrading technologies for unused energy sources found in countries such as Australia and Indonesia (low-rank coal, heavy oil, etc.). It is also developing Coal & Energy energy conversion, coal handling and coke-related technologies.The purpose is Technology to diversify and stabilize energy resources in Japan. Department sHydrocracking sHyper-coal manufacturing/utilization Hyper-coal manufacturing/ Hydrocracking sLow-rank coal upgrading utilization sCoal handling sCoke for ironmaking
R&D Results
R&D Expenditure & Number of Patent Applications
1.6% R&D expenditure 1.6% 1.8% 1.5% 1.6% 1.6% (consolidated)
¥31.4 billion ¥30.7 billion ¥29.8 billion ¥28.4 billion ¥29.9 billion ¥29.8 billion Ratio to net sales
921 838 874 790 800 785 No. of patent applications (nonconsolidated) FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Kobe Steel Receives Thomson Reuters 2015 Top 100 Global Innovators Award Kobe Steel was chosen as one of Thomson Reuters Top 100 Global Innovators for the second year running. Thomson Reuters has been sponsoring the award since 2011. In the future, in addition to actively pursuing research and development for the creation of new value, we will engage in conserving and utilizing the intellectual properties that arise from this research in the global market.
20 Recent Topics Developments in Japan and Overseas
Joint Venture Formed with Millcon in Thailand to Produce and Sell Wire Rods
In February 2016, Kobe Steel and Thailand’s Millcon Steel Public Company Iron & Limited establish a joint venture called Kobelco Millcon Steel Co., Ltd. (KMS) Steel to produce and sell steel wire rods in Thailand. KMS will be Kobe Steel’s only overseas location for wire rods and will strengthen its global supply network. Around ¥24.1 billion (6.79 billion baht) is being invested in KMS, which will have an annual production capacity of 480,000 tons.
Signing ceremony for Kobelco Millcon Steel
Matching Products and Technologies to Each Market’s Needs
Thai-Kobe Welding, which makes and sells welding electrodes in Thailand, was the Kobe Steel Group’s first overseas venture, established in 1968. For many years since then it has boasted a high share of the Southeast Asian market. The company is Welding carrying out initiatives to strengthen sales activities centered on its Thai Shinyokai sales network and further increase its presence in Southeast Asia. Vigorous sales and marketing activities are also underway in China. Sales promotion activities are being carried out through the China Shinyokai sales network with the aim of maximizing orders and securing sales. Going forward, we will continue to promote solutions activities by unifying technology, sales, and production, aiming to strengthen our competiveness and provide each market with the highest quality and services.
Chinese Site Starts Production of Aluminum Sheet Products for Automotive Panels
Kobelco Automotive Aluminum Rolled Products (China) Co., Ltd., was Aluminum & established in January 2014 in the Xiqing Economic-Technological Development Area of Tianjin City, China, to produce and sell aluminum sheet Copper products for automobile panels. The roughly ¥19 billion plant has an annual production capacity of 100,000 tons. Operations commenced in January 2016. At present, fuel-efficiency requirements for automobiles are being tightened around the world, leading to greater demand for aluminum sheet products for automobile panels that will contribute to lighter automobile bodies. As local supply needs are also increasing, Kobe Steel is responding by expanding its global supply network. Kobelco Automotive Aluminum Rolled Products (China) Co., Ltd.
Large-Scale Investment in Nonstandard Compressor Business
Kobe Steel is constructing a test facility (with a maximum output of 40 MW) for internally geared centrifugal compressors at its Takasago Machinery Works. The facility will have one of the largest test capacities in the world. With an investment of around ¥8.0 billion, construction work is proceeding with the current aim of beginning operations around April 2017. Centrifugal compressors account for 70-80 percent of the nonstandard compressors market, which is said to be worth about ¥1 trillion. The market for large compressors in particular has been growing rapidly in response to the development of larger plants in recent years. The installation of the new test facility will enable our entry into this burgeoning market for large compressors. Internally geared centrifugal compressor Kobe Steel is the world’s only manufacturer that offers nonstandard compressors in three varieties—screw, centrifugal, and reciprocating. Going forward, we aim to be the world’s top comprehensive compres- sor manufacturer by taking on the challenge of actively entering new fields.
21 Orders Received for the World’s Largest MIDREX® Plants in Algeria
Kobe Steel’s U.S. subsidiary Midrex Technologies, Inc. and its consortium partner Paul Wurth S.A. of Luxembourg, which holds the construction license for the MIDREX® Direct Reduction Process, received an order for a MIDREX® plant with an Engineering annual production capacity of 2.5 million tons (one of the largest direct reduction ironmaking plants in the world) for a steelworks being constructed by Algerian Qatari Steel in Algeria. The consortium also received an order in May 2015 for a plant of the same size from Tosyali Algeria, also in Algeria.
Kobelco Eco-Solutions Vietnam Receives Orders for Water Supply Plants
Kobelco Eco-Solutions Vietnam Co., Ltd. (KESV), a local subsidiary of Kobelco Eco-Solutions Co., Ltd. in Vietnam, received a series of orders for water supply plants that applies Japanese energy-saving technology. The orders were received from Thang Long Water and Beverages Trading Investment JSC (Thalbeco) in June 2015 and from Hoang Mai Water Supply Co., Ltd. (Hoang Mai) in August 2015. These orders represent a positive evaluation of KESV’s delivery record for water supply plants in Vietnam as well as its technical proposals suited to the needs of each company, including the water quality of sources, environmental conditions, and size of operations. The plant for Thalbeco will supply clean tap water to around 2,000 homes in the Thang Long area of Hung Yen Province, while the plant Coagulation Settling & Automatic Siphon Filter for Hoang Mai will supply city water (industrial and tap) to an industrial delivered to Thalbeco for use in water supply plant (treatment capacity 1,500m3/day) park and about 25,000 homes in the Hoang Mai District of Nghe An Province.
New U.S. Excavator Plant Begins Operations in 2016
Kobelco Construction Machinery Co., Ltd., reentered the USA and Europe indepenclently for the first time in 10 years, after its global Construction alliance with CNH Global N.V. came to an end in late 2012. Expansion of sales and distribution networks in the USA and Europe is proceeding Machinery favorably with the establishment of Kobelco Construction Machinery U.S.A. in Texas and the formation of Kobelco Construction Machinery Europe in the Netherlands. Additionally, a new plant in South Carolina, USA, which had been under construction since May 2015, began full-scale operations in June 2016. The company is aiming to strengthen its business and quickly increase its ability to provide comprehensive support in the Americas. Opening ceremony
Groundbreaking ceremony held for Moka Power Plant
Kobelco Power Moka, Inc. held a groundbreaking ceremony in July Electric 2016 to mark the start of construction of its power plant. Power The Moka Power Plant will be Japan’s first full-scale power generation facility located inland. This project will contribute to increasing the resilience of the energy infrastructure by dispersing power generation sources and further developing the region. Plans call for the start-up of operations to begin in the second half of 2019.
Kimio Hashimoto, President of Kobelco Power Moka (left) and Hiroya Kawasaki, Chairman, President and CEO of Kobe Steel (center), with Shinto priest at ceremony to ensure safe construction
22 Iron & Steel
Strengthening manufacturing capabilities, for more advanced, higher value-added products
The Iron & Steel Business is comprised of the steel, casting and forging, titanium, and steel powder divisions. In addition to a commitment toward strengthening manufacturing capabilities to increase productivity and cost competitiveness, the Iron & Steel Business is also focused on global development of “Only One” products and technologies and expansion in fields of growing demand, such as transportation.
Distinctive Products & Technologies
Found in one out The world’s of every two strongest steel! cars, worldwide! Wire Rod for Automotive High-strength Steel Sheet Engine Valve Springs Stronger than standard steel sheet, Kobe Steel’s Engine valve springs must be able to withstand high-strength steel sheet is primarily used in auto thousands of expansions and compressions per frames and helps contribute to lighter vehicles. In minute. They require an extremely high level of particular, Kobe Steel is a leading manufacturer quality. Kobe Steel’s wire rod products are the for development and commercialization of ultra brand of choice, with a 50-percent share of the high-strength steel sheet. Weight Savings Weight world market. in Transportation Field in Transportation
Steel Wire s Wire rod for suspension springs Steel Plates s Storage tank steel plate (for LNG/LPG tanks) Other Distinctive Rods s Automotive cold heading quality (CHQ) s Steel plate for offshore structures (API-standard 500 MPa steel) Products and Bars wire rod s Steel plate for ships (Hizumiless residual stress control steel plate) & Technologies s Wire rod for steel cord s Steel plate for bridges (Eco-View weathering steel plate for painted bridges) s Automotive steel bar s Steel plate for construction (Kobe Super Toughness high HAZ toughness s Bearing steel wire rod steel plate)
1323 Steel Wire Rods and Bars Steel Castings and Forgings
Kobe Steel produces special steel, Kobe Steel uses casting (pouring molten primarily for use in cars. In particular, steel into a mold and cooled to achieve Kobe Steel has garnered high praise Wire rod coils the desired shape) and forging (using a for its level of technology in cold press to form and strengthen solid heading quality (CHQ) steel wire rod, steel) processes to produce complex which is used in making nuts, bolts, and large components such as ship and engine and suspension springs. crankshafts.
Steel bars 13,000-ton press
Steel Plates Titanium
Kobe Steel produces steel plates Kobe Steel is an integrated titanium primarily for use in ships, construction manufacturer, handling all stages from materials, construction equipment and ingot melting to the production of final industrial machinery. In recent years, products. Kobe Steel offers products with the increasing global demand for for a wide range of fields, from titanium energy development, Kobe Steel has alloys for aircraft and rocket parts to also begun focusing on plate products commercially pure titanium for for line pipes, pressure vessels and Plate rolling mill consumer products such as golf clubs Ring mill steel plate for storage tanks. and roof tiles.
Steel Sheets Steel Powder
Kobe Steel produces steel sheets Kobe Steel produces steel powder primarily for use in automobiles, primarily for use in complex-shaped consumer appliances and construction parts. As Japan’s top steel powder materials. Focusing on high-strength manufacturer, Kobe Steel also steel sheet, Kobe Steel also contributes investigates new possibilities for steel to lower environmental impact through powder, such as steel powder for lighter weight vehicles and improved Steel coils environmental use for cleaning Atomized steel powder (ATOMELTM) fuel consumption. polluted soil and water.
Major Products
Steel Products Steel Castings and Forgings Titanium Steel Powder
40% share Titanium of world pioneer! market! Titanium for Aircraft Engine Crankshafts Components Crankshafts are a core ship part, Titanium is an important material for components that transmitting force from a ship's engine to cover the engine rotor, form an airflow path, and prevent its propellers. Kobe Steel holds 40 percent shattering during engine failure. Kobe Steel has been of the world market share for built-up and delivering fan case components for aircraft engines for Other solid crankshafts, garnering high praise over 30 years, meeting the demands of engine makers for dimensional precision at the micro around the world. level. ©Rolls-Royce Titanium fan case and jet engine
Steel Sheets s Zinkobella GX-COTE Series Steel s Steel powder for magnetic materials Chromate-free electrogalvanized steel sheet Powder s Steel powder for environmental cleaning Steel Castings and Forgings s Rolls for rolling mills s Pre-alloyed steel powder Titanium s Commercially pure titanium (for heat exchangers, golf clubs, IT-use, s SEGLESSTM graphite segregation-free steel powder motorcycle mufflers, wristwatches, etc.) s Titanium alloys (for aircraft parts)
24 Welding
Striving to become No. 1 in Asia as “the world’s most reliable welding solutions company”
Kobe Steel’s Welding Business offers total welding solutions that combine welding materials, robotic welding systems, construction technology and more, with the aim of becoming No. 1 in Asia as “the world’s most reliable welding solutions company.”
Distinctive Products & Technologies
Greatly Reduced contributing to Non-Copper-Coated Solid Wires environmental Welding Materials Flux-Cored Wires reduced costs! impact! (SE wire series) for Low-Alloy Steel
Kobe Steel produces Produced using a unique Increasingly sophisticated welding materials that offer wire surface treatment high-strength and low-alloy, high work efficiency for a technology, heat-resistant steel is being wide variety of industries, non-copper-coated utilized in recent years in including shipbuilding, solid wires offer high-temperature, bridge engineering and groundbreaking feed high-pressure applications industrial machinery. These capability and such as oil refining reactors materials greatly decrease outstanding arc stability. and thermal power boilers. welding man hours, greatly These wires also help to We have developed welding increase welding efficiency reduce environmental materials specially designed and help create more impact, removing the to meet these needs.
Energy and Infrastructure Fields Energy and Infrastructure beautiful bead appearance. need for copper plating treatment during manufacturing.
25 Welding Materials Welding Systems
Kobe Steel manufactures and sells Kobe Steel boasts top results in Japan in the field approximately 800 different varieties of of robotic welding systems, particularly in systems welding materials, under the brand names for the medium and heavy plate welding of FAMILIARC™, TRUSTARC™ and PREMIARC™. structural steel and construction machinery. These materials help contribute to better Kobe Steel offers optimal welding solutions that manufacturing in a wide variety of industries, not only automate welding work and improve including the shipbuilding, steel frame and efficiency, but also help reduce costs and improve automotive sectors. quality for customers.
Covered Welding Electrodes
Also known as electric arc welding rods, these are the most common, general-purpose welding materials worldwide. They allow for welding with comparatively simple equipment, and thus are utilized in a wide range of industries, including construction and steel frames.
Solid Welding Wires Robotic welding system for construction machinery
Used primarily in the automotive, construction, and construction machinery fields, solid welding wires are combined with robots for continuous welding, increasing user productivity.
Flux-Cored Welding Wires (FCW)
Used primarily in shipbuilding and bridge construction, these wires have a flux (oxide powder) core. Optimal flux composition helps shorten welding times and improve the quality of welded parts.
Robotic welding system for column assembly
Major Products
Welding Materials Welding Systems Testing and Inspection High-Functional Materials Covered welding electrodes TIG welding rods Robotic welding systems for structural steel Testing, analysis, inspections and Flux-cored and solid wires Backing materials Robotic welding systems for bridge construction commissioned research High functional filters for for semi-automatic welding Robotic welding systems for construction machinery Training and inspection deodorization, dehumidification, Solid wires and fluxes for Other robotic welding systems Consulting ozone decomposition, gas removal submerged arc welding Off-line teaching systems Maintenance of industrial robots, power and oil mist removal Welding robots, welding power sources sources and equipment Deodorizing equipment
Top Increased TM Reduced costs market share, application of REGARC -equipped and improved worldwide! ARCMAN™-GS robotic welding! Structural Steel quality! Welding Systems The ARCMAN™ welding The REGARC™ is a groundbreaking robot series is used in a new welding process technology that wide range of plate welding can significantly reduce spatter and fields, such as for structural fumes, even with a high current, using steel and construction CO2 arc welding. REGARC™-equipped machinery. The GS model structural steel welding systems features internalized achieve high-efficiency and components such as high-quality welding with low spatter. torches and cables, making welding robots more viable in narrow spaces. It also allows for tandem welding.
26 Aluminum & Copper Maintaining a leading position in Japan by focusing on fields that contribute to weight savings in automobiles and aircraft
The Aluminum & Copper Business focuses primarily on the transportation sector, strengthening its lineup of “Only One” products and making efforts to establish and enhance a global supply system. Kobe Steel is aiming to become indispensible for customers around the world by further increasing technologies and trust amassed over many years as a leading aluminum and copper manufacturer in Japan.
Distinctive Products & Technologies
50% market Top market Top market share in Japan! share in Japan! share in Japan! Aluminum Automotive Aluminum Forgings for Aluminum Shapes for Panel Materials Automotive Suspensions Railway Cars
Due to increased demand for lightweight- Demand for lightweighting has Aluminum shapes are used ing, the use of aluminum panels for engine led to increased use of to create the bodies of hoods and other applications is increasing. aluminum in suspension railway cars. Kobe Steel has Kobe Steel has capitalized on the expertise systems. Kobe Steel has proposed various shapes to and engineering capabilities it has amassed captured the leading market meet customers’ need for over many years to capture approximately share in Japan through weight savings,and is the top 50 percent of the market share in Japan. aluminum forgings that are supplier of shapes in Japan more than 40 percent lighter for railway car bodies. than conventional steel Recently, besides Japan, its forgings. aluminum shapes have been adopted in the UK. Weight Savings in Transportation Field Savings in Transportation Weight
Aluminum s Automotive heat exchanger materials Aluminum Aluminum aircraft castings Other Distinctive s Flat-rolled s ALHIGHCE™ and ALJADE™ high-precision aluminum plates Castings and s Semiconductor and LCD manufacturing Products and Technologies Products Forgings equipment (chambers)
27 Aluminum Flat-rolled Products Copper Strips
Kobe Steel uses advanced rolling Kobe Steel manufactures and sells technologies amassed over many copper-alloy strip products, such as semi- years to provide value-added conductor leadframe and automotive “Only One” products in a variety terminal and connector materials. Using of fields, including beverage can proprietary elemental bonding to develop stock, automotive panel materials, value-added products that combine disk materials for hard drives, strength, conductivity and heat-resistance, air-conditioner fin materials, and Kobe Steel holds an approximately 20- plates for semiconductor and LCD percent share of the Asian market for manufacturing equipment. semiconductor leadframe materials. Aluminum coils Copper strips for electronic materials
Aluminum and Magnesium Castings and Forgings Copper Tubes (Kobelco & Materials Copper Tube)
Kobe Steel utilizes sophisticated Kobelco & Materials Copper Tube was casting, forging, analysis and alloy created through a 2004 merger with development technologies to Mitsubishi Materials and is Japan’s provide "Only One" products such leading manufacturer of air-conditioning as automotive suspension forgings, and other copper tubes. Kobelco & sand-cast aircraft parts and Materials Copper Tube has developed chambers for semiconductor and inner-grooved copper tubes for the LCD manufacturing equipment. EcoCute heat pump and other value- Aircraft gearbox added products. It strives to strengthen supply networks in Southeast Asia (Thailand and Malaysia). Copper tubes for heat exchangers
Aluminum Extrusions and Fabricated Products
Boasting world-leading engineering capabilities, Kobe Steel provides “Only One” products such as automotive parts and railway car materials. Kobe Steel also devel- ops original products, such as integrated stay and bumper parts created through electromagnetic forming technologies.
Aluminum extrusions
Major Products Aluminum flat-rolled Aluminum and Aluminum Extrusions Copper Strips Copper Tubes products Magnesium Castings and Fabricated Can stock and Forgings Products Leadframe materials Air-conditioning copper Automotive panel materials Castings Extrusions (shapes, tubes, rods) Terminal and connector materials tubes Disk materials Forgings Fabricated products Construction/hot water General materials Machined products supply copper tubes
60% share 70% market of world Top manufacturer share in Japan! market! in Asia!! Aluminum Bottle Aluminum Disk SuperKFCTM Leadframe Can Stock Materials Material
Kobe Steel holds a more than 30 percent Aluminum disk materials are primarily Leadframe materials are used as wiring materials in market share for aluminum beverage can used as hard disk substrates for desktop semiconductor packages. Kobe Steel is Asia's lead- stock in Japan. Furthermore, Kobe Steel computers and data centers. They require ing manufacturer of leadframe materials, with an holds an approximately 70-percent share a high level of quality. Kobe Steel is a approximately 20-percent share of the market. of the market for aluminum bottle can leading manufacturer of aluminum disks, SuperKFCTM was developed using sophisticated alloy Other stock, which holding approxi- technologies, offering requires mately 60 vastly improved durability complex percent of the and conductivity over processing. world market previous products. share.
Aluminum s Automotive bumper materials Copper Strips s Strip for automotive terminals and connectors Extrusions s Low insertion force plating for automotive/consumer appliance terminals
28 Machinery
Pursuing growth strategies aimed at building a global business
Kobe Steel’s Machinery Business offers a wide range of products, including Industrial machinery, compressors and energy equipment. Kobe Steel creates original, “Only One” products to meet global demand in key growth fields, such as the automotive, environmental and energy industries, while also striving to build optimal production networks and strengthen its manufacturing capabilities.
Distinctive Products & Technologies
50% of Leading market Compact and market share, share in Japan! efficient! Nonstandard Screw worldwide! Kobelion Standard Microbinary Compressors Compressors Generators Compared with other types of compressors, screw Kobe Steel’s standard compressors boast some of We supply compact, highly efficient microbinary compressors offer high compression ratios and the highest levels of specs and energy efficiency and power generation systems, capable of generating efficiency, as well as superior energy efficiency through feature a variety of world-first, innovative functions. electricity from heat sources of around 100°C. responses to fluctuations in load. Kobe Steel manufac- Kobelion is our foremost standard (compact) com- These generators are being adopted for effective tured the first screw compressor in Japan in 1956 and pressor, with a leading market share in Japan. utilization of unused heat sources, such as factory has been supplying these compressors to large-scale waste heat and hot spring waters, as well as for plants ever since. Kobe Steel holds 50 percent of the generation from wood biomass. world market share. Energy and Infrastructure Field Energy and Infrastructure
29 Industrial Machinery Compressors
Tire and Rubber Machinery Kobe Steel offers a wide lineup of Kobe Steel offers a full lineup of compressors, ranging from nonstandard industrial machinery, including tire (large-capacity) gas compressors to standard (compact) air compressors. Kobe and rubber machinery, plastic Steel also contributes significantly to energy conservation on the part of users processing machinery, deposition through heating and cooling equipment that incorporate these compressors, equipment and metalworking such as refrigeration compressors and heat pumps. Kobe Steels aims to be machinery. In particular, Kobe one of the world's leading comprehensive manufacturers of compressors. Steel specializes in products for rubber mixing, tire testing, and Nonstandard Compressors plastic mixing and pelletizing, offering a variety of globally com- Nonstandard compressors are an essential petitive "Only One" products in support component of oil refining and other these fields. Tire drum testing machine large-scale plants. Kobe Steel is the world's only manufacturer that offers nonstandard compressors in three varieties—screw, Plastic Processing Machinery centrifugal and reciprocating.
Standard Compressors
Kobe Steel offers a diverse lineup of com- pressors, ranging from 1.5 kW to 600 kW, to help power both large and small plants. LCM series plastic mixing These compressors also help contribute to and pelletizing system energy conservation for users, with the world’s highest standards of energy Energy and Nuclear Equipment efficiency.
Kobe Steel offers a wide lineup of large equipment for use in such Heating and Cooling Equipment fields as the energy and chemical industries. Kobe Steel’s products, Kobe Steel offers a wide lineup of energy which include oil refining reactors efficiency equipment, including refrigeration (pressure vessels), LNG vaporiz- compressors, heat pumps, steam generators, ers, heat exchangers and nuclear steam compressors and binary generators, equipment, are globally that boast the world’s highest standards of renowned for their high level of energy efficiency. These products utilize screw compressor technology, combining quality. compact size with high efficiency. Open rack LNG vaporizer
Major Products Industrial Machinery Compressors
40% World’s share of top supplier! world market! Nuclear Spent Fuel Casks Rubber Mixers Other Distinctive Products & Technologies These casks are used for shipping and storing spent nuclear fuel from nuclear power plants. Kobe Steel was The tires used in automo- the first Japanese manufacturer, in 1981, to begin biles, large construction manufacturing large-sized forged casks. Kobe Steel machinery and other Industrial Machinery boasts the world’s top shipping record for these casks, vehicles come in a variety of s Tire testing machines supplying over 250 casks in Japan and overseas. shapes and materials. Mixing the rubber for these s Plastic mixing and pelletizing tires, which requires systems Other molecular precision, is s PVD coating toll services and equipment carried out by rubber mixers. LNG equipment Kobe Steel holds a 40 s Microchannel reactors (SMCR®) percent world market share s for rubber mixers. Compressors s Geared centrifugal compressors s Steam generators
30 Engineering
Developing a global business that capitalizes on strengths in differentiated technologies and know-how
The Engineering Business has engineering capabilities that combine and integrate original, industry-leading processes, technologies, and expertise. Kobe Steel contributes to society by providing value-added solutions that flexibly meet a wide variety of customer needs.
Distinctive Products & Technologies
New, World’s most original widely used seawall DR process! technology! MIDREX® Process Flared Seawalls
Developed by Midrex Technologies, Inc., Kobe Steel’s original seawall technology a wholly owned subsidiary of Kobe Steel, helps to reduce overtopping and minimize the MIDREX® Process utilizes natural gas damage from high waves, such as from to make direct reduced iron. As the typhoons. The gentle flare helps to break world’s leading direct reduction process, waves and dampen their force. The flared it is used in around 70 plants worldwide, seawalls eliminate the need for the high particularly in the Middle East. seawalls and wave dissipating concrete blocks that are commonly used, better preserving scenery and sandy beaches. Due to the technology’s ability to protect Energy and Infrastructure Field Energy and Infrastructure coastal regions, demand is expected to grow nationwide.
31 Ironmaking Processes Social Infrastructure Kobe Steel has introduced unique ironmaking processes to regions Steel Structures/Erosion Control throughout the world. In addition to proprietary direct reduction processes such as the MIDREX® Process (which utilizes natural gas as the reductant) In the field of public disaster prevention, Kobe Steel offers original products and a new ironmaking method, the ITmk3® Process, Kobe Steel also that combine safety with environmental conservation. In addition to being offers the FASTMET® Process for steel mill dust recycling, KOBELCO iron Japan,s top supplier of large steel sabo dams (grid-type dams), Kobe Steel ore pelletizing systems, and the upgraded Brown Coal (UBC) Process. also provides wave-rebuffing flared seawalls and other innovative products that meet diversifying disaster prevention needs. KOBELCO Pelletizing System
Kakogawa Works is home to Japan’s only pelletizing plant. Iron ore is pretreated at the plant, where it is fired into pellet form using a rotary kiln. KOBELCO Pelletizing Systems have also achieved impressive results in iron ore and fuel producing regions such as Venezuela, Chile and Bahrain. Flared seawall
Nuclear Power/CWD Urban Transit Systems
Utilizing advanced technologies and Kobe Steel is Japan’s leading engi- expertise in handling radioactive neering company for advanced materials, Kobe Steel supplies transit systems, with an impressive facilities and equipment for treat- supply record. Kobe Steel has ment and storage of nuclear waste. worked on such lines as the Kobe In the CWD (chemical weapons Port Liner and Tokyo Yurikamome. destruction) field, Kobe Steel offers Kobe Steel also applies its its original DAVINCH® technology advanced transit technologies to for controlled detonation of chemi- Nuclear power-related facility urban rail systems located overseas. Advanced transit system cal weapons. Kobe Steel utilizes its inspection and analysis technologies with its operational know-how to con- tribute to the international community.
Major Products
Ironmaking Processes Nuclear Power/CWD Social Infrastructure MIDREX® Process Nuclear power-related plants
Top supplier in Japan!
Grid-Type Sabo Dams for Erosion Control Other Distinctive Products & Technologies
Grid-type sabo dams minimize impact on the environment, maintaining safety by inter- cepting debris and driftwood arising from s KOBELCO Pelletizing System floods, but without blocking the passage of s Advanced transit systems ITmk3® Process water and fish during normal times. Kobe s s FASTMET® Process Steel is the top supplier in Japan of these dams, greatly contributing to disaster prevention and environmental conservation.
32 Engineering
Kobelco Eco-Solutions
Distinctive Products & Technologies
Effective Full lineup! utilization of biogases! Sewage Biogas Water Treatment Facilities City Gas Pipe Injection Facility
A leading manufacturer in the field of Together with local authorities and gas suppli- water treatment, Kobelco Eco-Solutions ers, Kobelco Eco-Solutions developed a city gas offers a full lineup of water treatment production facility capable of refining gas from products, including water and sewage sewage sludge to the same quality as city gas. treatment facilities, industrial water In October 2010, Kobelco Eco-Solutions began and wastewater treatment facilities, injecting biogas into city gas pipes. Biogas is a sludge treatment facilities and pure/ combustible gas produced from methane ultra-pure water production facilities. fermentation of biomass solids such as sewage Kobelco Eco-Solutions also operates and food scraps. A carbon-neutral energy as a supplier of pure and ultrapure source, biogas has aroused significant interest water and is expanding sales in this for its potential to reduce dependence on fossil area. fuels.
33 Water Treatment Waste Treatment and Recycling
Pure water production facility Fluidized-bed gasification and melting furnace A leading manufacturer in the field of water treatment, Kobelco Eco- Kobelco Eco-Solutions boasts Japan's leading supply record for Solutions offers a full lineup of water treatment products, including water fluidized-bed gasification and melting furnaces. These furnaces help supply and sewage treatment facilities, industrial water and wastewater customers reduce CO2 emissions and landfill space. Kobelco Eco-Solutions treatment facilities, sludge treatment facilities and pure/ultra-pure water also offers a wide variety of treatment options for handling PCB waste. production facilities. Kobelco Eco-Solutions also operates as a supplier of Our broad menu enables us to meet a wide variety of treatment needs pure and ultrapure water and is expanding sales in this area. ranging from municipal to PCB wastes.
Cooling Towers Chemical and Food Processing Equipment
Plume abatement cooling towers High-purity hydrogen oxygen generator Kobelco Eco-Solutions develops and supplies state-of-the art cooling Kobelco Eco-Solutions offers a wide lineup of equipment: glass-lined towers for industrial as well district heating and cooling needs. Friendly equipment and evaporators, dryers, and brewing equipment. These on local environments, these products include space-saving towers, plume products are vital to a variety of processing industries, such as the fine abatement towers and ultra-quiet towers. chemical, pharmaceutical, petrochemical and foodstuff industries. In the field of next-generation energy, Kobelco Eco-Solutions also handles high-purity hydrogen oxygen generators.
Major Products Water Treatment Cooling Towers Waste Treatment and Chemical and Foodstuff Environmental Industrial/municipal water treatment Industrial cooling towers Recycling Processing Equipment Analysis facilities District heating and Pure/ultrapure water production cooling towers Municipal waste incineration and melting Glass-lined equipment Examination of water quality equipment, industrial water and Ultra-quiet cooling towers plants (fluidized-bed gasification and melting Polymerizers and reactors Water quality analysis at factories wastewater treatment plants furnaces, stoker-type incinerators, fluidized- Separation and refining equipment and research centers Biowaste (sludge, food waste) bed incinerators, plasma melting furnaces) Powder processing equipment Measurement of industrial wastes recycling facilities Bulky waste and other recycling facilities High-purity hydrogen oxygen generators (PCB, metals, organic matter) PCB waste treatment plants
Environmentally friendly melting Safe PCB furnaces! detoxification! Fluidized-Bed Other Distinctive Products & Gasification and PCB Detoxification Technologies Melting Furnaces Facilities These furnaces offer environment-friendly treatment, utiliz- Metallic sodium dispersion (SP process), solvent extraction ing the energy found in waste to carry out everything from decomposition (SED process) and plasma melting decompo- • High-efficiency, two-stage incinerators incineration to ash melting (reduction/ sition methods (which can simultaneously treat a wide variety • DT module system slagging), thus reducing both landfill and CO2. of PCB wastes) are utilized at PCB waste treatment facilities • TWINSTIR reactors in locations throughout the country. • High-purity hydrogen oxygen generators
34 Construction Machinery Providing new solutions from the synergy of excavators and cranes
Through management integration with Kobelco Cranes Co., Ltd. on April 1, 2016, Kobelco Construction Machinery Co., Ltd. made a new start as a construction machinery manufac- turer whose strength lies in having two areas of expertise: excavators and cranes. The company will meet increasingly diverse customer needs through development of new products and services based on the fusion of excavator and crane technologies, including the use of ICT, on top of improvement of its current environmental technologies that offer low fuel consumption and low noise. As of April 2016, the company operates locations in China, Southeast Asia, India, Australia, the Middle East, the Americas, and Europe. It is accelerating the establishment of a global system that can meet needs that differ by region and through its products.
Distinctive Products & Technologies
The world’s first hybrid One of world’s hydraulic excavator top market with a lithium-ion shares! battery! Hybrid Hydraulic Excavators G Series Crawler Cranes
Having begun R&D in 1999, Kobelco Construction Machinery created the world’s first The G series is a line of small to medium-sized crawler cranes designed to meet hybrid hydraulic excavator in 2006. It later came out with 8-ton and 20-ton class models, regional regulations around the world. They come equipped with "G Mode," which offers and in November 2016 it will start marketing the SK200H, a state-of-the-art 20-ton class 25 percent better fuel efficiency than previous models and helps to reduce CO2. The G hybrid hydraulic excavator that makes full use of a high capacity lithium-ion battery, which series is not only environmentally friendly but is an industry first. It will reduce fuel consumption also people-friendly, with more comfortable by up to 19 percent and increase workload by up cabs and safety features such as easy-to-use to 10 percent. The SK200H is the pride of Kobelco monitors. In August 2015, the company Construction Machinery and the flagship machine launched the new BM1500G crawler crane in its product lineup. Kobelco Construction for foundation and civil engineering work. With Machinery is committed to providing higher a substantially increased hoisting capacity, it product value to customers based on the can handle increasingly larger loads, including Energy and Infrastructure Field Energy and Infrastructure concept of “Power Meets Efficiency.” steel pipe piles. The BM1500G is one of the largest models for civil engineering and foundation work in Japan.
35 Hydraulic Excavators Mini Excavators
These excavators were developed after thorough investigation and analysis of on-site conditions and applications. Kobelco’s iNDr (Integrated Noise and Dust Reduction Cooling System) equipped in short rear tail swing excavators are the quietest in the industry, reducing noise during operation. The ACERA GEOSPEC series Conventional excavator Mini excavator was designed to reduce hydraulic pressure loss, offering unparalleled work performance and cost savings. Construction Recycling Metal Recycling Environmental Recycling Machines
As the pioneer who created the world’s first building demolition and vehicle dismantling machines, Kobelco Construction Machinery offers a wide range of original environmental products focusing on construction, metal and waste recycling and forestry.
Building demolition machine Scrap loader
Crawler Cranes
Kobelco Construction Machinery offers a wide lineup of crawler cranes, rang- ing from the large-sized SL series used for the construction of large structures such as long-span bridges and wind and thermal power generation plants, to the small to medium-sized almighty Mastertech-G series, which offers tough- ness and advanced controls. A variety of trusted Kobelco cranes can also be found in use in other indus- tries, such as the BM-G series base machines for civil engineering and foun- dation work. Mastertech-G series crawler crane SL series large-sized crawler crane
Wheel Cranes
Kobelco’s MK650 lattice boom wheel crane for harbor use was released in Japan in May 2014. It has garnered high praise from customers for a range of performance and features specifically tailored to harbor loading and unloading. The city conscious Panther-X series, developed specifically for urban use rather than rough terrain, is also popular and can be found in use at numerous sites.
MK series wheel crane
Major Products
Civil Engineering and Environmental Recycling Machinery Crawler Cranes Wheel Cranes Construction Machinery
36 Electric Power Through power plants equipped with state-of-the-art environmental equipment, we aim to contribute to the stable supply of electricity as well as secure a more stable profit base.
Our power supply business began in fiscal 2002 and contributes to the stable supply of electricity for the region. We are also currently pursuing plans to construct additional plants.
Power Plant Overview
Power plant Fuel Capacity Generation method Commencement of supply
Coal-fired, supercritical pressure Kobe Power Plant Coal 1.4 mil. kW (700,000 kW ×2) No. 1 unit: April 2002 power generation No. 2 unit: April 2004
No. 1 unit: 2H 2019 (scheduled) Moka Power Plant (under construction)City gas 1.248 mil. kW (624,000 kW ×2) Gas turbine combined cycle (GTCC) No. 2 unit: 1H 2020 (scheduled)
(Provisional name) Kobe Works Thermal Power Coal-fired, ultra-supercritical pressure No. 1 unit: fiscal 2021 (scheduled) Coal 1.3 mil. kW (650,000 kW ×2) Plant (in planning) power generation No. 2 unit: fiscal 2022 (scheduled)
37 Business Vision Contribute to society through the stable supply of electricity from power stations equipped with state-of-the-art environmental equipment Kobe Steel started its power supply business in Kobe in fiscal 2002. It is one of the largest power supply businesses in Japan and has contributed to the stable supply of electricity for the region. We are also constructing a 1.25 million kW gas-fired power plant in Moka, Tochigi Prefecture that is scheduled for completion between 2019 and 2020. As we obtain the understanding of community residents, we are also proceeding with the construction of a 1.3 million kW coal-fired power plant on the site of Kobe Works’ blast furnace. If everything goes according to plan, our total power generation capacity will reach 3.95 million kW during fiscal 2022. Furthermore, in April 2016, we integrated the Kobe Power Plant, which was run at Kobe Works by the Iron & Steel Business, with the new electrical power projects in Moka, Tochigi Prefecture and Kobe, which were being carried out by corporate headquarters, creating a new division, the Electric Power Business. The objectives of this integration include seamless operation with effective utilization of our existing power supply business and clearer articulation of the Group’s management vision. Under our Fiscal 2016-2020 Medium-Term Management Plan, we will focus on continuing stable operation of and securing stable earnings from the Kobe Power Plant and on making steady progress with the two new electric power projects in Moka, Tochigi Prefecture and Kobe.
Business Kobe Power Plant Contents The Kobe Power Plant was established as the cornerstone of a new business following revisions to the Electricity Business Act in April 1995. In establishing the power station we fully capitalized on existing infrastructure at Kobe Works and our expertise in in-house power generation in the Iron & Steel Business. Wholesale power supply commenced in fiscal 2002. All generated power is supplied to The Kansai Electric Power Co., Inc. The power station is one of the largest independent power producers in Japan, capable of covering approximately 70 percent of Kobe's peak electricity demand. Because the power station is located in an urban setting, it also features environmental equipment with some of the highest standards. In April 2016, the name of the operat- ing company was changed from Shinko Kobe Power Inc. to Kobelco Power Kobe, Inc. to reflect the Group brand.
Moka Power Plant (under construction) We have established a plan to construct a 1.25 million kW power station on land adjacent to the Moka Plant in Tochigi Prefecture. A contract for power and gas supply was formed with Tokyo Gas Co., Ltd. in September 2014. Construction is currently under- way, with plans to begin operation of the No. 1 unit in the second half of 2019. In January 2016, Kobelco Power Moka, Inc. was established as a special purpose company (SPC). The power plant will receive city gas from Tokyo Gas, which it will utilize as fuel for the state-of-the-art GTCC systems, offering one of the highest levels of generation efficiency in Japan. As Japan’s first full-scale inland thermal power station, we believe it will help contribute to a stronger energy infrastructure through dispersed generation and regional development.
(Provisional name) Kobe Works Thermal Power Plant (in planning) Upstream operations at Kobe Works are scheduled to end in 2017. As a result, we are pursuing plans to construct a 1.3 million kW power station on the site of the works' blast furnace. A contract for power delivery was formed with The Kansai Electric Power Co., Inc. on March 2015. Environmental assessments are currently underway, with plans to begin operation of the first of two plants in fiscal 2021. The new power station will feature cutting-edge, ultra-supercritical generating equipment. As an urban power station, it will also feature advanced environmental equipment of the highest standards suitable for the location.
History of Kobe Steel’s Power Supply Business
Entry into the Wholesale Power Supply Businessl Beginning in the second half of the 1980s, deregulation by the government started to gain momentum, and in April 1995 the Electricity Business Act was revised, making it possible for ordinary companies to enter the wholesale power supply business. At the time, Kobe Steel had around 670,000 kW worth of its own power-generation facilities at Kobe Works and Kakogawa Works. As the company had amassed power plant operation technology and human resources over nearly 40 years, it started to investigate the power supply business, which is a long-term, stable business, beginning around 1994, when talk of amending the Electricity Business Act was underway. In 1995, Kobe Steel sustained immense damage—totaling over ¥100 billion—in the Great Hanshin Earthquake. Employees worked together on recovery and achieved restoration, includ- ing relighting of the blast furnace, a mere two months after the earthquake. At the same time, in addition to a plan for rationalization and reconfiguration of production equipment at its steelworks, the company was also considering development of new business that would make maximal use of its management resources, in order to expand stable earnings. Given this background, the revision of the Electricity Business Act was an advantageous situation for the company, which decided in March 1996 to enter the power supply business. The following August, Kobe Steel responded to the first invitation for bids from The Kansai Electric Power Co., Inc., with which it signed a power delivery agreement in January 1997. In fiscal 1996, the year that we applied, six power companies nationwide had solicited for wholesaling of electricity, and the total power generation for the successful bids topped 3 million kW. Of this amount, the output of our Kobe Power Plant was the largest. We were again successful in the invitation for bids in July 1997, and the total power generation for our No. 1 and No. 2 units combined reached 1.4 million kW, which is capable of covering approximately 70 percent of Kobe’s peak electricity demand. Construction and Start of Operations of Kobe Power Plant The Kobe Power Plant was situated on the former site of the No. 1 and No. 2 blast furnaces, raw material yard, and sinter plant—an area of around 300,000 m2—that used to occupy the western one-third of Kobe Works. It was designed based on the concepts of increasing the city’s power self-sufficiency and establishing an urban power plant that could contribute to the creation of a city that is resilient to disasters through diversifying the electric power system, and with the aims of harmony with the environment surrounding the power plant as well as interaction and peaceful coexistence with the local community. Construction began in March 1999 after conducting an environmental assessment and over 1,000 group and individual explanatory meetings for local residents. The equipment was brought in, installed, and tested, after which the No. 1 unit came online on April 1, 2002 followed by the No. 2 unit on April 1, 2004, thus beginning one of the largest power supply businesses in Japan.
38 Other Businesses Developing a wide range of businesses based on manufacturing
The Kobe Steel Group pursues an extensive range of businesses that are being continuously refined through repeated selection and concentration. Combining technologies and services from these different businesses in order to identify new value is integral to the Identity of the Kobe Steel Group.
Shinsho Shinko Real Estate Kobelco Research Institute
As the core trading company of the Kobe Steel Shinko Real Estate Co., Ltd. is the Kobe Steel Kobelco Research Institute, Inc. (KRI) carries Group, Shinsho Corporation supports high added- Group’s core lifestyle support company. Shinko’s out material and structural analysis, trials, physi- value manufacturing through creative business businesses include the G-clef condominium cal analysis and other services. KRI also manu- development. brand, detached factures and sells Shinsho is especially home sales and rent- target materials and active in growth fields als, brokerage, reno- test equipment for such as resources, vation, operational fields such as semi- information systems, management of conductors, FPD and energy and the envi- public facilities, solar power, develops ronment. It is helping insurance services special materials, and to advance the global and more. Shinko otherwise maximizes development of the contributes to cus- in-company synergy Kobe Steel Group tomer lifestyles and to support manufac- with business loca- peace of mind turing. tions in 17 countries Shinsho Corporation through trustworthy G-clef Shinkobe Tower Oxide semiconductor Osaka head office sputtering target material worldwide. and reliable products and services.
Company name Businesses
Kobe Wing Stadium Management and operation of Noevir Stadium; parking lot, sports club and park management Leasing and management of office building; design, construction, management and contracting of construction work; I.H.D. Center operation and management of exhibition halls, conference spaces and other venues Kobelco Systems Planning, designing, development, operation and maintenance of IT solutions and services
Kobelco Personnel Personnel dispatching, recruiting and outsourcing
Kobelco Business Support Office-related services, PR services, travel services, and human resources and payroll services
Kobelco Financial Center Loans, receipts and disbursements, sale and purchase of accounts receivable, and other financial services
Japan Superconductor Technology Manufacture and sale of superconducting wire, superconducting magnet systems and superconducting application systems
Shinko Care Life Planning and operation of private senior citizens' homes and in-home care services
Shinko Industrial Manufacture and sale of high-pressure gas cylinders and other press-formed and assembled products
Kobelco Career Development Human resource development and consulting, training, and creation and sale of training materials
Shinko Lease Leasing and installment sales of industrial machinery, office equipment and other movable propgrty Patent and technical information search; industry, market and technology surveys; brokerage and registration of technical Shinko Research information and technical PR.
39 CSR Promotion System
CSR Promotion Structure Board of Directors President & CEO Environmental Management Committee Environmental Management Promotion (Secretariat: Environmental Control & Disaster Prevention Dept.) Executive Council Employees Shareholders and Investors Social Contribution
CSR Committee Customers & Business Partners (Secretariat: Corporate Planning Dept.) Business Activities Audits (accounting)
Ensuring Reliable Financial Reporting Risk Management Compliance Compliance Committee (Secretariat: Legal Dept.) Internal Control Activities Sustainability Report 2016
In 2006, we established a CSR Committee that is in charge of determining basic policies related to corporate social responsibility and providing centralized implementation. To facilitate discussion, make proposals and conduct follow-up verification of important matters, we also established a Compliance Committee to advise the Board of Directors. The CSR Committee compiles information concerning CSR activities and publishes it each year in the form of a sustainability report.
Strengthening and Enhancing Corporate Governance
Pursuing integrated management of such a wide range of segments Directors. requires both appropriate decision-making based on vigorous discussions by By delegating authority with in a certain scope to persons in charge of the board of directors, as well as flexible management supervision. For this carrying out business executions, including the President and other reason, Kobe Steel believes it is important not to completely separate executives, and appointing executive officers to assist in business supervision and execution. executions, the Board of Directors is able to delegate management and The Board of Directors consists of the Chairman of the Board, the promptly make business decisions. President and executive directors in charge of important posts in the head Meetings of independent directors, comprised entirely of independent office division, business divisions or the technical development division. We directors, are also in place, as a means of providing objective opinions on also invite a number of outside directors to provide a fair and neutral appointments and remuneration, as well as information related to business perspective and reflect the viewpoints of our stakeholders. executions. We are structured as a company with an audit and supervisory committee Using these mechanisms, we aim to strengthen supervision while also model, which gives those in change of audits voting rights on the Board of accelerating decision-making.
Corporate Governance
Compliance Committee Internal Reporting System Compliance Director, Compliance Officer, Outside Experts Outside Lawyers
Consults Advises Meetings of Independent Directors Executive Liaison Committee Receives Opinions (Executive Remuneration, 5 Outside Directors Personnel Matters) Business Units/ Group Companies Board of Directors President & CEO Appoints Directors, Executive Officers Appoints 16 Directors (Including 5 Outside Directors) Supervises Supervision) Audits Business Execution Audit & Supervisory Committee Executive Council Committees Audits
5 Audit & Supervisory Committee Members Management System Appoints General Meeting of Shareholders (including 3 Outside Directors)
Audit Dept. Information Sharing, (Decision-Making,
Accounting Auditors Accounting Auditing
Strengthening Compliance Compliance System Kobe Steel has a Compliance Committee that advises the Board of Directors. Consults Two of its members are company directors, while five come from outside the Compliance Committee Board of Directors company in order to maintain fairness and neutrality. The Committee proposes Reports recommended plans related to compliance, checks on progress, and delib- Companywide Compliance Director Internal Reporting System erates cases reported through the internal reporting (whistleblowing) system. We appoint a companywide compliance director and a companywide Compliance Planning & Administration Section compliance officer. We have also set up a dedicated Compliance Planning & Administration Section in the Legal Department to work in partnership with planning and administrative departments and with compliance managers Planning & Administrative Departments of Business Units stationed in our business units. Compliance Managers
Employees
40 Environmental Management
Environmental Management Policy
Environmental management based on 3 corporate visions: Group Environmental Management Structure Kobe Steel aims to be a leading environmental corporate group Board of Directors At Kobe Steel, we believe we have a duty to future generations to leave behind a healthy ecosystem, in which all living creatures can thrive. To this end, we have established a Basic President & CEO Environmental Management Policy as well as six initiatives for implementation. We strive to implement environmentally conscious environmental management during every stage of our Executive Council operations and have set up a dedicated Environmental Management Committee to explore and make recommendations on these six initiatives. With participation by all Group employees, Environmental Management we are dedicated to becoming a leading environmental corporate group. Committee Secretariat Basic Environmental Management Policy Implementation Subcommittees on Specific Topics As a leading environmental corporate group, Kobe Steel Group will: Committee
Contributing to Pursue environmentally friendly manufacturing. Environmentally the Environment Friendly through Products, Contribute to the environment through its products,technologies Manufacturing Technologies and services. and Services
Coexist and cooperate with society. Disclosure of Six Initiatives for Coexisting and Environmental Implementation Cooperating with By following these principles, the Kobe Steel Group aims to fulfill its social responsibilities, Information Society improve its environmental capabilities and raise its corporate value.
Promoting Initiatives Thorough with Full Employee Risk Management Enhancing Corporate Value through Groupwide Environmental Management Participation
KOBELCO GREEN PROJECT
In respect to environmental concerns, the Kobe Steel Group also strives to work in cooperation and harmony with society. Beginning in fiscal 2013 we imple- mented a Groupwide program known as the KOBELCO GREEN PROJECT that comprises a variety of environmental activities. Activities include the KOBELCO Forest Fairy Tale Prize, designed to raise children's environmental awareness, and forest development programs, carried out by Group employees.
Forest Development KOBELCO Forest Fairy Tale Prize Since the autumn of 2011, the Kobe Steel Group has been utilizing The KOBELCO Forest Fairy Tale Prize was introduced in fiscal 2013. The employee volunteers to carry out forest development programs. contest collects fairytales on forest- and nature-related themes from Forest development is carried out at two locations within Hyogo elementary, junior high and senior high school students. Winning stories are Prefecture: the KOBELCO Forest in Miki City and the ECOWAY Forest then transformed into picture books by professional authors and illustrators, ‚ in Kobe s Nada Ward, Also, since fiscal 2014 the Ibaraki Plant has for use as environmental education tools. During the third annual prize, held been conducting conservation of countryside forests and agricultural in fiscal 2015, we received a total of 574 entries. The two winning stories land in the Zenihara district of Ibaraki, Osaka Prefecture. were then turned into picture books, with around 1,800 book sets donated to So far, over 2,000 employees have participated in these activities, elementary schools, middle schools, high schools, special education schools which have included tree trimming and cutting of undergrowth. and public libraries in Hyogo Prefecture. Sunlight has now started to reach into the forest, which is slowly becoming healthier as a result.
Left: Elementary school division grand prize winner Mori no Maho no Yofuku Picture book presentation ceremony (The Forest’s Magic Clothes) at Hyogo Prefectural Library Right: Junior high and senior high school Countryside and agricultural conservation activities in Zenihara District, Ibaraki division grand prize winner Morino Ginko Koyama Shiten (The Koyama Branch of Morino Bank)
41 Initiatives Through Rugby
Contributions to Society through Sports
The Kobe Steel Group has a history of contributing to society through rugby. The Kobe Steel Rugby Club interacts with local communities and supports sports programs in a variety of ways, including support for high school rugby teams to popularize and strengthen the sport in Japan. The club’s efforts are one of the many ways in which Kobe Steel helps to train the next generation of athletes and broaden sporting horizons. Below we will introduce a few of the ways in which the Kobe Steel Group contributes to society through sports.
88 Years of History: the Kobelco Steelers (Kobe Steel Rugby Club) First established in 1928 and officially recognized by the company in 1931, the Kobe Steel Rugby Club consistently aims to be the best, fostering unity and building morale among employees. The team claimed its first victory in 1935 at the 5th Kobe corporate rugby federation tournament. They went on to win the tournament in the next year as well. Boasting 88 years of history, the team’s golden age occurred from 1989 to 1995, when they won seven consecutive all-Japan championships. In 1988 the club’s name was changed to the Steelers, and in 2003—the year Japan’s Top League was introduced—their name was changed to the Kobe Steel Kobelco Steelers. That was the year they stunned spectators by claiming victory in Top League’s first January 8, 1995, seventh victory commemorative championship. The club continues to battle on the forefronts of rugby, contributing to society by photo after award ceremony promoting rugby in Japan and broadening horizons for the sport.
‚ Special Support for High School Rugby enough players. 2015 marked the tournament s 11th year. We also hold “the other Hanazono,” in advance of the official winter nationals, in which The Kobe Steel Group offers special support for the KOBELCO Cup (an two teams—east vs. west—made up of players chosen from those all-Japan high school division rugby football tournament). The tournament participating in the KOBELCO Cup U18 division, compete against each other. ‚ is divided into the under-17 (U17) division, for players from strong schools In 2011 we introduced a rugby women s sevens tournament. We are that aim to produce future national team athletes, and the under-18 (U18) now working to raise skills for both male and female athletes, in advance division, for inter-school teams made up of individual athletes unable to of the 2019 Rugby World Cup and 2020 summer Olympics, both to be attend the nationals at Hanazono Stadium due to being from schools without held in Japan.
The 2015 KOBELCO Cup Women’s rugby match
Kobelco Athletes Partcipate Donating to the Japan Spinal Cord Foundation in Elementary School Rugby Clinics On June 12, 2016, before a practice game, five Kobe Steel rugby players On November 2, 2015, the Kobe Steel Rugby Club donated ¥226,502 to participated in a rugby clinic for elementary school children held at Kobe the Japan Spinal Cord Foundation (an NPO). These funds came from match Sports Park Universiade Memorial Stadium. Sixty elementary school fundraising activities held during the last season and a portion of the students from Kobe City joined the clinic, practicing passing and dodging proceeds of the Kobelco Rugby Festival 2015, which was held on May and then participating in 31, 2015. The Kobe a friendly match. After Steel Rugby Club has the practice, there was a been donating to the question and answer Foundation for 13 years, session, during which the as spinal cord damage is athletes answered the an injury to which rugby ‚ children s questions with players are particularly sincerity and attention. susceptible, and plans to The two-and-a-half-hour continue carrying out rugby clinic proved to be fundraising activities to an enjoyable event, from this end. start to finish. Children’s rugby clinic Together with members from the Japan Spinal Cord Foundation
42 Work Environment
Creating a Pleasant Work Environment for Employees
+OBE 3TEELS HUMAN RESOURCE PROGRAMS AND HUMAN RESOURCE DEVELOPMENT POLICIES RESPECT THE PERSONALITY INDIVIDUALITY AND DIVERSITY OF COMPANY EMPLOYEES WHILE CREATING A LIVELY AND ATTRACTIVE WORK ENVIRONMENT 0ROGRAMS INCLUDE STRONG SUPPORT FOR A HEALTHY WORK LIFE BALANCE AND THE SUCCESS OF WOMEN IN THE WORKPLACE 7E ALSO COOPERATE WITH 'ROUP COMPANIES IN VARIOUS WAYS TO hSUPPORT EACH EMPLOYEE IN DEVELOPING HIS OR HER ABILITIES WHILE RESPECTING MUTUAL COOPERATION ONE OF THE PRINCIPLES OF THE +OBE 3TEEL 'ROUP #ORPORATE 0HILOSOPHY
Revolutionizing Working Styles 3ECURING TALENTED HUMAN RESOURCES CAPABLE OF FLEXIBLY ADAPTING TO CHANGES IN THE BUSINESS ENVIRONMENT AND SOCIETY IS INDISPENSABLE TO ACHIEVING STABILIZED PROFITS AND SUSTAINABLE GROWTH AS OUTLINED IN THE NEW +OBE 3TEEL 'ROUP -EDIUM 4ERM -ANAGEMENT 0LAN )N FISCAL WE BEGAN REVOLUTIONIZING WORKING STYLES FOR THE COMPANY MOTIVATED BY THE IMPORTANCE OF CREATING VIBRANT ATTRACTIVE WORKPLACES WHERE THE INDIVIDUAL TALENTS OF EMPLOYEES FROM A DIVERSE RANGE OF BACKGROUNDS CAN SHINE 4HESE CHANGES FOCUS ON THREE AREAS CHANGES TO WORKING STYLES CHANGES TO WORKING HOURS AND CHANGES TO WORK DUTIES 4HESE CHANGES AIM TO INCREASE USAGE OF LEAVE TIME AND REDUCE WORKING HOURS AS PART OF EFFORTS TO IMPROVE DIVERSITY AND WORK LIFE BALANCE
Changes to Working Styles KCBELCO-style meeting and email guidelines— Changes to Working Hours Changes to Work Duties which outline ideal meeting and email styles Overtime after 7:00 pm is generally prohibited. We are pursuing drastic changes to work flow. for Kobe Steel—are promoted throughout the Group.
Promoting Diversity
Promoting Diversity !T +OBE 3TEEL WE KNOW THAT ENSURING WORKPLACES WHERE EMPLOYEES WITH A DIVERSE RANGE OF BACKGROUNDS AND VALUES CAN THRIVE TO THEIR FULLEST IS INTEGRAL TO INCREASING GROWTH FOR THE ORGANIZATION AS A WHOLE AND FOR PROMOTING VIGOROUS EXPANSION !S A RESULT WE HAVE IDENTIFIED DIVERSITY PROMOTION AS ONE OF OUR MOST IMPORTANT MANAGEMENT TASKS )N /CTOBER WE ESTABLISHED THE $IVERSITY $EVELOPMENT 3ECTION 'UIDED BY POLICIES DESIGNED TO PROMOTE SUCCESS FOR WOMEN IN THE WORKPLACE WE HAVE BEEN CARRYING OUT INITIATIVES TO INCREASE EMPLOYMENT OF WOMEN AS WELL AS PROMOTE LONG TERM RETAINMENT AND SUCCESSFUL CAREER BUILDINGFOR INSTANCE BY SUPPORTING CHILDCARE AND NURSING LEAVE !S A RESULT OF THESE INITIATIVES WE WERE CHOSEN IN -ARCH FOR THE .ADESHICO "RAND 3TOCK 3ELECTION WHICH INCLUDES LISTED COMPANIES THAT FEATURE EXCELLENT PROGRAMS FOR THE PROMOTION OF WOMEN IN THE WORKPLACE 7E WERE ONE OF COMPANIES OUT OF SELECTED FOR INCLUSION 3ELECTION WAS BASED ON BOTH THE DEGREE OF ACTIVITIES AND QUALITY OF FINANCIAL INDICATORS
Details of Initiatives !S PART OF INITIATIVES TO PROMOTE SUCCESS FOR WOMEN IN THE WORKPLACE WE PURSUE PROACTIVE RECRUITMENT 4ARGETS FOR FEMALE HIRING ARE FOR CAREER TRACK ENTRY LEVEL OFFICE POSITIONS FOR CAREER TRACK ENTRY LEVEL TECHNICAL POSITIONS AND FOR ENTRY LEVEL TECHNICAL WORKERS )N ORDER TO ENCOURAGE ONGOING SUCCESS WE HAVE ALSO IMPLEMENTED INDIVIDUAL CAREER PLANNING FOR NEW FEMALE CAREER TRACK EMPLOYEES !DDITIONALLY WE HAVE SYSTEMS IN PLACE TO ALLOW FOR TEMPORARY LEAVE IN THE EVENT THAT A SPOUSE IS TRANSFERRED AS WELL AS FOR REHIRING AFTER LEAVING DUE TO MARRIAGE CHILDREARING NURSING OR SPOUSAL JOB TRANSFER /THER INITIATIVES INCLUDE A DEDICATED DIVERSITY DEVELOPMENT WEBSITE AND EXCHANGE MEETINGS FOR WOMEN EMPLOYEES
Employee Statistics !S OF -ARCH Major Programs and Initiatives to Men Women Total Promote Diversity and Women in the Workplace .O OF EMPLOYEES s #AREER SABBATICAL PROGRAM ENABLES CAREER TO BE RESUMED LATER IN THE CASE OF A -ANAGERS , SPOUSE S WORK TRANSFER ETC #AREER TRACK EMPLOYEES s 2EEMPLOYMENT SYSTEM REEMPLOYMENT FOR PEOPLE WHO QUIT FOR REASONS SUCH AS 4ECHNICAL WORKERS MARRIAGE CHILDCARE OR CAREGIVING s 3UPPORT FOR EARLY RETURN AFTER CHILDCARE LEAVE UP TO c -EDICAL STAFF #ONTRACT SHOKUTAKU EMPLOYEES s $IVERSITY 3UPPORT .ETWORK SECONDED EMPLOYEES 333 s 3UPPORT MEASURES FOR EARLY DEVELOPMENT OF SKILLS CAREER PLANNING FOR YOUNG FEMALE .EW HIRES WORKERS .EW GRADUATES s -ENTORING PROGRAM AND INITIATIVES TO REDUCE WORKING HOURS AND ENCOURAGE USE OF PAID VACATION -ID CAREER s &EMALE EMPLOYEE EXCHANGE MEETINGS AND DIVERSITY TRAINING FOR MANAGERS 9EARS OF EMPLOYMENT YEARS YEARS YEARS *Employment figures are from fiscal 2015. s .O OF FOREIGN EMPLOYEES MALE FEMALE !S OF -ARCH s %MPLOYMENT RATE OF PEOPLE WITH DISABILITIES
43 Work-Life Balance
+OBE 3TEELS SUPPORT FOR A HEALTHIER WORK LIFE BALANCE BEGAN WITH OUR FIRST ACTION PLAN WHICH WAS IMPLEMENTED FROM 4HE FIRST ACTION PLAN EXPANDED THE CHILDCARE LEAVE PERIOD UP UNTIL CHILDREN REACH YEARS OF ‚ AGE AND INTRODUCED A SPECIAL LEAVE SYSTEM )N +AKOGAWA 7ORKS WAS ONE OF THE FIRST LOCATIONS IN *APAN S STEEL INDUSTRY TO IMPLEMENT A HOUR CHILDCARE SYSTEM )N OUR SECOND FISCAL ACTION PLAN WE ESTABLISHED A NEW WORK FROM HOME SYSTEM AND IN OUR THIRD FISCAL ACTION PLAN WE IMPLEMENTED CHILDCARE AND FAMILY NURSING LEAVE SYSTEMS THAT SURPASS THOSE PRESCRIBED BY LAW SUCH AS SWITCHING TO PAID LEAVE FOR CHILDCARE AND FAMILY NURSING CARE ABSENCES )N RECOGNITION OF INITIATIVES SUCH AS THESE WE RECEIVED THE +URUMIN -ARK FROM WHICH CERTIFIES OUR COMMITMENT TO DEVELOPMENT OF THE NEXT GENERATION )N THE FUTURE IN ORDER TO CREATE A HEALTHIER WORK LIFE BALANCE AND PROMOTE INCREASED DIVERSITY WE WIL CONTINUE TO PROMOTE AWARENESS OF Kurumin COMPANY SYSTEMS AND PROACTIVELY BUILD WORKPLACE CULTURES THAT ENCOURAGE THEIR USE STRIVING FOR PARTICIPATION BY BOTH FEMALE AND MALE Mark EMPLOYEES IN CHILDREARING ACTIVITIES
FY 2013 FY 2014 FY 2015 Main Initiatives to Support Childrearing and Nursing .O OF EMPLOYEES UTILIZING -EN s %XTENSION OF CHILDCARE LEAVE UP UNTIL CHILD IS YEARS OLD CHILDCARE LEAVE 7OMEN s %XPANSION OF FLEXIBLE WORK HOURS FOR CHILDCARE THROUGH ELEMENTARY SCHOOL AGE UTILIZING SPECIAL -EN s 7ORK FROM HOME SYSTEM DAYSMONTH EXPANDED TO PREGNANT WOMENFAMILY CHILDCARE LEAVE 7OMEN NURSING CARE FOR CHILDREN UP TO ELEMENTARY SCHOOL AGE s %XTENSION OF CAREGIVING LEAVE UP TO YEARS *No. of persons utilizing leave in applicable year / No. of persons with children under 3 x 100 s %XTRAORDINARY LEAVE SYSTEM DAYSYEAR FOR CHILDREN UP TO YEARS OLD s 2EMUNERATION INTRODUCED FOR CHILD AND FAMILY CARE LEAVE s $ISTRIBUTION OF (ANDBOOK ON "ALANCING 7ORK AND #HILDREARING s #HILDCARECAREGIVING SUPPORT SERVICES s 0OINT AWARD SYSTEM FOR CHILDCARE ITEMS UNDER WELFARE BENEFITS PROGRAM
Preventing Harassment Health and Safety Management
+OBE 3TEEL DOES NOT TOLERATE HARASSMENT IN THE +OBE 3TEEL HAS BEEN CHOSEN FOR TWO YEARS RUNNING FOR THE WORKPLACE INCLUDING SEXUAL AND POWER HARASS -INISTRY OF %CONOMY 4RADE AND )NDUSTRY AND 4OKYO 3TOCK MENT )N THE EVENT THAT HARASSMENT OCCURS WE %XCHANGE (EALTH AND 0RODUCTIVITY 3TOCK 3ELECTION 4HE RESPOND WITH SWIFT AND FIRM MEASURES (EALTH AND 0RODUCTIVITY 3TOCK 3ELECTION IS AN INITIATIVE /UR #ORPORATE #ODE OF %THICS INCLUDES CLEAR TOWARD INCREASING LIFE EXPECTANCY FOR CITIZENS AS IS CALLED POLICIES AND STANDARDS REGARDING HARASSMENT FOR UNDER THE *APAN 2EVITALIZATION 3TRATEGY 4HE SELECTION % LEARNING AND OTHER TRAINING ON PREVENTING IDENTIFIES COMPANIES THAT TAKE A STRATEGIC ECONOMIC APPROACH TO EMPLOYEE HARASSMENT IS CARRIED OUT FOR MANAGERS AND WE HEALTH MANAGEMENT STRIVE TO MAINTAIN WORKPLACE ENVIRONMENTS THAT +OBE 3TEELS HEALTH MANAGEMENT POLICY ENCOURAGES EACH EMPLOYEE TO ARE UNCONDUCIVE TO HARASSMENT THRIVE THROUGH CAREFUL ATTENTION TO EMPLOYEE HEALTH /UR PHILOSOPHY IS THAT HEALTH AND SAFETY IS THE BEDROCK OF MANAGEMENT AND A NECESSARY PRECURSOR Cover of Sexual Harassment Prevention Manual TO ALL BUSINESS ACTIVITIES !S A RESULT WE RECOGNIZE THE IMPORTANCE OF EARLY DETECTION AND TREATMENT OF ILLNESS AND OF IMPROVEMENTS IN EMPLOYEE LIFESTYLES PREVENTION 7E STRIVE TO ENHANCE PHYSICAL AND MENTAL HEALTH MANAGEMENT Human Resources Development SYSTEMS AND WILL FURTHER STRENGTHEN DEVELOPMENT OF PREVENTATIVE MEASURES
1. Extensive preventative care activities to prevent work-related illnesses (UMAN RESOURCE DEVELOPMENT AT +OBE 3TEEL AIMS TO INSTILL IN EMPLOYEES A (Fiscal 2015: Zero new patients suffering from work-related illnesses) SENSE OF PRIDE AND SATISFACTION IN THEIR WORK 4O ACHIEVE THIS IT IS IMPORTANT THAT EMPLOYEES HAVE CONCRETE GOALS AND EXPERIENCE GROWTH ON A DAILY BASIS 2. Early detection and treatment of illness 7E FULLY SUPPORT OPPORTUNITIES FOR EMPLOYEE GROWTH THROUGH PERSONAL /NE DAY FULL MEDICAL CHECKUPS COMPLETELY COVERED BY THE COMPANY DILIGENCE AND DEDICATION +OBELCO -EDICAL #HECK 7E WANT EACH AND EVERY EMPLOYEE TO SHARE IN A DIVERSE SENSE OF VALUE %ARLY TREATMENT OF HIGH RISK OBESITY METABOLIC SYNDROME AND TO FEEL PRIDE AND ENTHUSIASM IN THEIR DAILY WORK 4O THIS END WE PURSUE EARLY TREATMENT OF HIGH RISK OBESITY WHICH IS CONSIDERED TO BE A STRONG A VARIETY OF TRAINING INITIATIVES AND HAVE ESTABLISHED THE FOLLOWING IMAGE FOR CONTRIBUTING FACTOR FOR ILLNESSES SUCH AS BRAIN DISEASE HEART DISEASE AND HUMAN RESOURCES AT THE +OBE 3TEEL 'ROUP CANCER -ORE COMPLETE CANCER SCREENINGS EXPENSES FULLY COVERED BY HEALTH Vision for Human Resources at the Kobe Steel Group INSURANCE h!S EMPLOYEES WE WILL CONTINUALLY STRIVE TO ESTABLISH TRUST -ORE THOROUGH COUNSELING SERVICES PREVENTATIVE PSYCHOLOGICAL CARE IN +/"%,#/ ON A GLOBAL SCALEv Sincerity 3. Initiatives geared toward improving lifestyles (preventative measures, 0EOPLE WHO TAKE MATTERS SERIOUSLY AND ACT IN GOOD FAITH promotion of greater health consciousness) Cooperation ,IFESTYLE FACTORS THAT CONTRIBUTE TO HIGH RISK OBESITY METABOLIC SYNDROME 0EOPLE WHO EXPRESS THEIR OWN VIEWS WHILE ALSO WORKING IN PARTNERSHIP WITH OTHERS SUCH AS EATING DRINKING AND EXERCISE HABITS DIFFER BY PERSON !S IT CAN BE AND ACCEPTING THEIR OPINIONS DIFFICULT FOR INDIVIDUALS TO INDEPENDENTLY IMPROVE AND MAINTAIN GOOD LIFESTYLE Innovation HABITS THE (EALTH #HALLENGE PROGRAM OFFERS REGULAR SUPPORT FOR ISSUES 0EOPLE WHO ARE NOT SATISFIED WITH THE CURRENT SITNATION AND CONSTANTLY STRIVE TO INNOVATE SUCH AS EXERCISE SMOKING CESSATION AND WEIGHT LOSS 0RIZES ARE OFFERED FOR INDIVIDUALS WHO MEET THEIR GOALS
44 Social Contributions
In addition to our rugby-based initiatives, as members of the local community, each Kobe Steel business location carries out a variety of activities to contribute to society. Below is a report on the Kobe Steel Group’s efforts to contribute to society, including educational support for future generations, community interac- tion, cleanup activities, and environmental conservation activities in cooperation with the community.
Supporting Future Generations
Since fiscal 2006 we have engaged in ongoing activities aimed at supporting the growth and development of children who bear the future.
Kobelco Community Contribution Fund 10 Years of Activities Support Local Children Kobe Steel established the Kobelco Community Contribution Fund in fiscal 2006 on the occasion of its 100th anniversary. In fiscal 2015, the Fund marked its 10th anniversary, with 18 locations (including Group companies) donating toys and teaching materials to children through local facilities and organizations.
“Watch Out for Children” signs and traffic Opaque projectors as a learning tool Balloons and other supplies for childcare Large toys for kindergartens and daycare safety batons for a crossing guard volunteer for elementary schools (Moka Plant) support centers (Takasago Works) centers (Shinko Engineering) organization (Saijo Plant)
Community Interaction
As responsible members of the local community, we engage in a variety of community events and social contribution activities at each of our business locations. Many of these events have become familiar annual events in the community and draw large numbers of visitors every year.
Kakogawa Works (Hyogo Prefecture) Fujisawa Plant (Kanagawa Prefecture) Kobelco Construction Machinery Co., Ltd. (Hiroshima Prefecture)
80,000 Attend 25th Shinko Kakogawa The Shinko Festival: a Familiar Community 4th Kobelco Construction Machinery Festival Event Held for 43 Years Straight Community Appreciation Festival: An Event for Community Residents The Shinko Kakogawa Festival, which has become The Shinko Festival began in 1973 as a Bon a familiar annual event, was held on October 25, dancing festival with the aims of building friendships The Kobelco Construction Machinery Community 2015 with the theme of “a festival that brings us among employees and giving back to neighborhood Appreciation Festival was held at the Itsukaichi all together, connects us, and is full of smiles.” associations. Today it is a familiar and cherished Factory on September 6, 2015. Approximately The festival was held on the premises of Kakogawa community event. The 43rd festival was held on 1,200 people attended, including employees, their Works and the adjacent sports ground, baseball August 5, 2015, with approximately 1,500 people families and members of the community. field, and gymnasium. As a venue for fulfilling attending, including community residents, business This year the festival included a performance interaction with the community, it featured numer- partners, employees and their family members. by the orchestra of Hiroshima Nagisa Junior High ous events such as tours of the hot strip mill and The festivities included stage shows such as School, Senior High School, which is nearby the plate mill, which are normally not available for singing, impersonations, and street performances, Itsukaichi Factory, a performance of sacred Shinto viewing, a go game competition, an ironmaking raffles, and the handing out of flower seed pack- music and dancing, and a kids’ corner where chil- demonstration, a game center, a superhero show, ets. The street performances in particular were a dren had the chance to get on a real excavator, a rugby workshop, and a softball workshop. favorite among the children. and more.
Tour of the plate mill Stage show Finale by the employee Kobelco Band
45 Hands-On Learning for Children
We support the growth of children through nature classes and manufacturing classes.
Nadahama Science Square (Hyogo Prefecture) Various Kinds of Hands-On Learning at a Community Center At the Nadahama Science Square we hold nature classes, including biotope observations, nature crafts, and observations of plant and insect specimens. During summer vacation we also hold many arts and crafts classes and science experiment classes, which are welcomed by many people as a way for children to do their summer science research projects for school. We also provide plant tours for elementary and junior high school field trips, a program that is used by numerous schools not only from the local commu- nity of Kobe but also from across the country. Creations made during a nature class Explanation before a plant tour
Social Contributions Worldwide
The Kobe Steel Group conducts business around the globe, and its business locations outside Japan contribute locally as members of their respective countries and communities while respecting local culture and customs.
Midrex Technologies, Inc. (USA) Support for Children Living in an Orphanage Helping to Make the Dreams of Children with Life-Threatening Medical Conditions Come True As part of its support for children living in an orphanage in North Carolina, Midrex provides donations to the facility, invites children to baseball games, Through the Make-A-Wish volunteer organization, the company participates in and gives them Christmas presents. activities to grant the wishes of children with life-threatening medical conditions. In 2015, Midrex was able to make the dreams of over 260 children come true.
Kobelco & Materials Copper Tube (Thailand) Co., Ltd. (Thailand) Support for Children in the Broader Community Kobelco & Materials Copper Tube (Thailand) Co., Ltd. offers support for children throughout the broader commu- nity, including areas at some distance from the plant. About 20 employees visited schools to play games with the children, together with neighborhood residents, and give musical performances. The children, in turn, gave dance performances to show their thanks. The volunteers also gave presents of sweets and stationary and enjoyed a meal together with locals. Children at a school visited for the first time
Kobe CH Wire (Thailand) Co., Ltd. (Thailand) Kobe Precision Technology Sdn. Bhd. (Malaysia) Support for Needy Schools and Children Activities to Lift Children’s Spirits Once per year, the welfare committee made up of employee volunteers at Kobe Precision Technology Sdn. Bhd. donated toys to children staying in the Kobe CH Wire (Thailand) Co., Ltd. (KCH) collects donations including sporting pediatric department of a general hospital in Penang, where the company is equipment, stationery, and monetary donations, from inside and outside the located. This donation was timed to coincide with the Hari Raya celebration company for schools on the outskirts of the city. Employees started this activity in the hospital that follows the end of fasting observed by Muslims. independently at the time of the company’s 10th anniversary in 2009. This activity by 15 employee volunteers lifted the spirits not only of the Volunteer activities at KCH are designed to assist in the healthy develop- children in the hospital but also their parents or guardians. ment of Thailand's less fortunate children. When selecting schools for aid, Also, five employee volunteers visited an orphanage in Bayan Lepas, also KCH welfare committee members in Penang, and donated a rice first investigate schools online and cooker and refrigerator. then visit in person before making their decision. Employees visit the schools again when delivering the donations, taking the time to inter- act with school personnel and parents or guardians.
Children receiving presents Visiting children in an orphanage
46 History of Kobe Steel
Kobe Steel: Over 110 Years in Business
1. The Early Years including three large blast furnaces, enabled us to achieve In 1905, our business began as Kobe Seikosho when Suzuki our dream of supplying steel plates and sheets to the market. Shoten acquired Kobayashi Seikosho in Wakinohama, Kobe. At first, Kobe Seikosho operated as a steel casting and forging 3. Doing Business Around the World manufacturer to produce trolley wheels and anchors. In 1961, the Fujisawa Plant and Ibaraki Plant were launched in In 1926, we gained a solid foothold as a steel manufac- order to manufacture welding electrodes close to customers. turer, when we embarked on wire rod production. In 1933, In 1967, the Hatano Plant was constructed to produce copper our second wire rod plant was built. In those years, Kobe tubes for air conditioners, refrigerators, and hot and cold water Steel, as a wire rod manufacturer, and Yawata Iron & Steel supply. Copper tube output climbed as air conditioners had a combined market share of 55 percent. became commonplace. In 1979, we completed a steel plant in Qatar, which demonstrated the real strength of our integrated approach to managing our steel and machinery businesses. Traditionally, the Machinery Division, as it was called then, played a central role in plant construction. However, the Qatar plant project earned high marks from the international community due to the advantages of our unique management approach, which included operational guidance from the Iron & Steel Division. In 1981, we began building the Moka Plant for aluminum production. The plant is now Asia’s leading aluminum rolling mill, producing automotive body material, aluminum can stock, and aluminum disk material for hard disk drives. The completion of the first phase of the Kobe Corporate Research Laboratories at Seishin, Kobe in 1987 enabled us to upgrade our research and development capabilities.
4. Recovery from the 1995 Earthquake 2. Expanding Operations in the High-Growth Era In January 1995, the Great Hanshin Earthquake destroyed In 1949, we began research on titanium and pioneered the our Kobe Head Office and brought the blast furnace and use of this light, but strong metal in industry. In 1953, other production equipment at Kobe Works to a halt. At Takasago Works commenced operation, producing steel Kakogawa Works, three material unloaders were destroyed castings and forgings including crankshafts for ships and and two employees were killed. We sustained damages cement plants, as well as air separators and heavy-wall totaling 102 billion yen, in what was the most serious crisis in pressure vessels for the chemical industry. Takasago Works our history. We managed to return the No.3 Blast Furnace at is now the major manufacturing center for Kobe Steel’s Ma- Kobe Works to operation within two and a half months after chinery Business. the earthquake following a massive restoration effort, which We were the first company in Japan to produce high-grade included the help of other steelmakers. welding electrodes. Our welding electrodes made a major Around this time, companies other than power firms were contribution to the Japanese shipbuilding industry, which was given permission to enter the electricity generation business, the world leader in shipbuilding tonnage in 1956. following deregulation in government policy. In 2004, we In 1959, we finally realized our long-held ambition to completed the Kobe Power Plant in Kobe. Its power genera- become an integrated steelmaker when Nadahama Works tion capacity of 1.4 million kilowatts makes this station was inaugurated. Furthermore, we were the first Japanese Japan’s largest wholesale power supply operation. engineering company to construct a plant overseas. In 1962, we built a fertilizer plant in East Pakistan, known today as 5. Reaching 100 Years and Looking Ahead Bangladesh. In September 2005, the Kobe Steel Group celebrated its Japan’s rapid economic growth spurred the momentum for 100th anniversary. Over the past century, we have overcome social capital improvements. Those years saw the foundation serious adversity and many difficulties. In 2006, we adopted of our integrated management covering our metal and machin- KOBELCO as a Group brand to provide a greater shared unity ery businesses. We supplied deformed steel bars for building and increase our recognition by society. Aiming at global construction, aluminum for railway cars, construction machinery growth, the Kobe Steel Group is steadily moving ahead and for national land development, and many other products. is looking forward to the next 100 years. To meet strong demand from economic growth and to In 2016, Kobe Steel launched a new business vision, survive international competition as a steelmaker, we needed KOBELCO VISION “G+,” which will take the company steel mills on the waterfront with blast furnaces that could beyond 2020. Kobe Steel will focus on the three core areas make large quantities of steel. In 1970, Kakogawa Works of materials, machinery and electric power. began operations. The works, featuring leading-edge facilities
47 1905 Kobe Seikosho (Kobe Steel Works) is 1992 Kobe Steel lists its shares on the London Stock Exchange and founded by Suzuki Shoten, a general established an American Depositary Receipt (ADR) program in partnership company. the United States. 1911 The company is incorporated as Kabushiki 1994 Kobe Steel develops one of the world’s highest classes of Kaisha Kobe Seiko Sho (Kobe Steel Works, superconducting magnets. Ltd.). 1995 Kobe Steel sustains losses 1914 A 1,200 metric ton press begins operation. totaling 102 billion yen caused by the Great Kobe Steel begins development of air Hanshin-Awaji Earthquake. compressors and starts manufacturing the following year (first in Japan). 1996 The wholesale power supply (IPP) business is launched. 1926 Kobe Steel completes Japan’s first integrated cement plant. Kobe Steel participates in a project to build a new city center in eastern Kobe. 1930 Kobe Steel begins production of Japan’s first electric mining shovel. 1998 DAMP-SHAPE™ is adopted for the 700 Series Nozomi Production of 7,600 horsepower diesel engines begin, 1933 bullet trains. the world’s biggest at that time. Environmentally friendly Aluminum production commences at 1939 chromate-free steel sheet the Chofu Works. is developed. Piano wire rod production begins, a 2002 1941 The No. 1 unit of the Kobe Power Plant begins commercial first in Japan. operation. An oxygen plant is constructed, 1950 Kobe City awards Kobe Steel an order for a connecting bridge marking the start of basic oxygen steelmaking in Japan. at Kobe Airport and a Port Liner extension. Production of titanium metal commences. 2004 1951 The Kobe Power Plant starts operation of the No. 2 unit, giving 1957 Phase 1 construction of the Yokohama Plant begins. it a total power generation capacity of 1.4 million kilowatts. Kobe Steel completes Japan’s largest titanium melting furnace. 2005 Kobe Steel celebrates its 100th anniversary. The Nadahama No.1 Blast Furnace is inaugurated, establishing 2006 1959 KOBELCO is adopted as the Kobe Steel Group’s brand. integrated steel production. The Group formulates a Kobe Steel Corporate Philosophy. 1960 The Central Research Laboratory is inaugurated. 2008 A large-scale demonstration plant using the Upgraded Brown Kobe Steel completes a fertilizer plant in East Pakistan (now 1962 Coal (UBC®) Process begins operation in South Kalimantan, Bangladesh). It was Japan’s biggest plant export. Indonesia. Corrosion-resistant aluminum alloy is used in all-aluminum 2010 1964 The world’s first commercial plant using the ITmk3® Process monorail cars on the Haneda Line. commences production of iron nuggets in Minnesota, USA. The Group’s medium-to long-term business vision, KOBELCO 1970 Kakogawa Works and VISION “G,” is launched. the Structural Engineering 2011 Laboratory are completed. Kobelco (China) Holding Co., Ltd., is established in Shanghai as our China headquarters. 2012 Kobelco Construction Machinery completes its Itsukaichi Factory and Global Engineering Center 1975 An automated guideway transit (AGT) system called the KRT goes 2013 into operation at the Okinawa International Ocean Exposition. Fiscal 2013-2015 Medium-Term Business Plan is Iaunched. 2014 1977 Kobe Steel receives an order to supply an AGT system Kobelco Automotive Aluminum Rolled Products (China) Co., Ltd., and construct the Port Island Line in Kobe. is established in China to make aluminum sheet for automobiles. 1979 The ARCMAN 6-axis articulated welding robot is developed. Kobelco Angang Auto Steel Co., Ltd. is established in China to KOBELCO is adopted as an international trademark. make advanced cold-rolled, high-strength steel sheet for automobiles. 1982 The P&H KOBELCO 5650 crawler crane, among the world’s 2015 largest, is developed. Moka power plant construction plan is selected for Cabinet 1983 The world’s largest 2,000˚C hot isostatic press is completed. Secretariat’s list of private-sector initiatives for national resilience against disaster (June). A manufacturing facility for superalloy powder is completed. High-strength intermediate shaft for ships is first in the world 1985 The Biotechnology Research Laboratory opens. Wire rod with the 2016 to be adopted by an international standard (August). world’s largest diameter of 60 mm is successfully produced. Kobe Steel is selected for second year running for Health and 1987 A pressure-resistant titanium alloy shell is adopted for the Productivity Stock Selection (January). Shinkai 6500 research submersible. Kobelco Milcon Steel Co., Ltd., a steel wire rod company, is 1989 Kobe Steel’s Rugby Club wins the established in Thailand (February). National Company Rugby Championship and the All-Japan Kobe Steel is selected for first time for Nadeshico Brand Championship for the first time. Stock Selection (March). Kobelco Construction Machinery Co., Ltd. and Kobelco Cranes Co., Ltd. are merged (April). 1989 The Tsukuba Research Laboratory for biotechnology Electric Power Business is established. research is established. 2016-2020 Medium-Term Management Plan is launched (April). 1990 Kobe Steel receives orders for a HIP system with the world’s highest operating temperature of 3,000 ˚C and a HIP system Kobelco Aluminum Products & Extrusions Inc., an aluminum supporting the world’s highest pressure of 10,000 atmospheres. extrusion and fabrication company, is established in the USA (May). 1991 Kobe Steel launches a business that develops condominiums with assisted living services.
48 Overseas Group Companies
COMPANY NAME LOCATION TEL / FAX ESTABLISHED EQUITY SHARE BUSINESS Iron & Steel Kobe Special Steel Wire TEL: +86-573-8522-3100 Manufacture and sale of CHQ and Zhejiang, China 2007-11 47.0% Products (Pinghu) Co., Ltd. FAX: +86-573-8522-3115 bearing steel wire Kobe Wire Products TEL: +86-757-8540-9380 Manufacture and sale of cold- Guangdong, China 2004-11 60.0% (Foshan) Co., Ltd. FAX: +86-757-8540-9396 fi nished steel bar and CHQ wire Kobelco Angang Auto Steel TEL: +86-412-6757635 Manufacture and sale of automotive Liaoning, China 2014-8 49.0% Co., Ltd. FAX: +86-412-6757635 cold-rolled, high-strength steel Shinko Wire (Guangzhou) TEL: +020-2283-6066 Guangzhou, China 2013-7 100.0% Sale of steel products Sales Co., Ltd. FAX: +020-2283-6068 Jiangyin Sugita Fasten TEL: +86-510-8666-8585 Manufacture and sale of wire for Jiangsu, China 2005-8 60.0% Spring Wire Co., Ltd. FAX: +86-510-8666-8989 automotive suspension springs Kobelco Spring Wire TEL: +86-757-8543-3186 Manufacture and sale of steel wire Guangdong, China 2012-1 50.0% (Foshan) Co., Ltd. FAX: +86-757-8543-3189 for high-grade springs Tesac Shinko Wirerope TEL: +86-21-3313-0512 Sale of wire rope, technical support, Consulting (Shanghai) Co., Shanghai, China 2011-3 100.0% FAX: +86-21-3313-0515 consulting Ltd. Microfi ne Trading TEL: +86-21-6443-5061 Sale of steel products, market Shanghai, China 2011-10 100.0% (Shanghai) Co., Ltd. FAX: +86-21-6443-5066 research, technical services Grand Blanc Processing, TEL: +1-810-694-6000 Investment Michigan, USA 20.0% Manufacture and sale of CHQ wire LLC FAX: +1-810-694-5164 2003-4 Kobelco CH Wire Guanajuato, TEL: +52-472-135-2900 2014-9 10.0% Manufacture and sale of CHQ wire Mexicana, S.A. de C.V. Mexico Kobelco Millcon Steel Co., Rayong, TEL: +66-3889-0420 Manufacture and sale of special 2016-2 50.0% Ltd. Thailand FAX: +66-3889-0429 steel wire rod Kobe CH Wire (Thailand) TEL: +66-2988-0576 Bangkok, Thailand 1997-8 30.0% Manufacture and sale of CHQ wire Co., Ltd. FAX: +66-2988-0954 TEL: +66-2988-1493 Investment Manufacture and sale of cold-fi nished Mahajak Kyodo Co., Ltd. Bangkok, Thailand 27.5% FAX: +66-2988-1008 2002-5 steel bar Manufacture and sale of hot-dipped PRO-TEC Coating TEL: +1-419-943-1100 Ohio, USA 1990-3 50.0% galvanized steel sheet and cold-rolled, Company FAX: +1-419-943-1101 high-strength steel sheet Welding Kobe Welding of Shanghai TEL: +86-21-6191-7850 Sale of welding materials, welding Shanghai, China 2010-2 100.0% Co., Ltd. FAX: +86-21-6191-7851 systems and parts Kobe Welding of Tangshan TEL: +86-315-3852805 Manufacture and sale of solid Hebei, China 2002-11 48.0% Co., Ltd. FAX: +86-315-3852829 welding wires Kobe Welding of Qingdao TEL: +86-532-8098-5005 Manufacture and sale of fl ux-cored Shandong, China 2008-2 90.0% Co., Ltd. FAX: +86-532-8098-5008 welding wires for mild steel Kobelco Welding Asia TEL: +65-6268-2711 Manufacture and sale of covered Singapore 1979-1 100.0% Pacifi c Pte. Ltd. FAX: +65-6264-1751 electrodes Kobelco Welding India Pvt. TEL: +91-124-4010063 Sale of welding materials, welding Haryana, India 2011-6 80.0% Ltd. FAX: +91-124-4010068 systems and parts Kobelco Welding Busan, South TEL: +82-51-329-8999 2011-4 51.0% Sale of welding materials Marketing of Korea Co., Ltd. Korea FAX: +82-51-329-8949 Kobelco Welding of TEL: +1-281-240-5600 Texas, USA 1990-3 100.0% Sale of welding materials America Inc. FAX: +1-281-240-5625 Manufacture and sale of fl ux-cored Kobelco Welding of Europe Heerlen, TEL: +31-45-547-1111 1994-6 94.6% wires for stainless steel and fl ux- B.V. Netherlands FAX: +31-45-547-1100 cored wires for mild steel Kobe MIG Wire (Thailand) Samutprakarn, TEL: +66-2324-0588 Manufacture and sale of solid wires 1988-9 66.0% Co., Ltd. Thailand FAX: +66-2324-0797 for gas-shielded metal arc welding Kobe Welding (Malaysia) TEL: +60-4-3905792 Manufacture and sale of covered Penang, Malaysia 1995-4 85.0% Sdn. Bhd. FAX: +60-4-3905827 electrodes Kobe Welding of Korea Co., Gyeongnam, TEL: +82-55-292-6886 Manufacture and sale of fl ux-cored 1995-3 91.0% Ltd. South Korea FAX: +82-55-292-7786 wire for mild steel
49 COMPANY NAME LOCATION TEL / FAX ESTABLISHED EQUITY SHARE BUSINESS Thai-Kobe Welding Co., Samutprakarn, TEL: +66-2324-0588 Manufacture and sale of covered 1968-4 40.7% Ltd. Thailand FAX: +66-2324-0797 electrodes Aluminum & Copper Kobe Aluminum Automotive TEL: +86-512-6878-7060 Manufacture and sale of aluminum Jiangsu, China 2010-9 60.0% Products (China) Co., Ltd. FAX: +86-512-6878-7066 forgings for automotive suspensions Kobelco Automotive TEL: +86-22-8398-6550 Manufacture and sale of aluminum Aluminum Rolled Products Tianjin, China 2014-1 100.0% FAX: +86-22-2399-3897 sheet for automotive panels (China) Co., Ltd. Suzhou Kobe Copper TEL: +86-512-8717-1555 Copper coil slitting, sale of copper Jiangsu, China 2005-5 100.0% Technology Co., Ltd. FAX: +86-512-8717-1550 strip for electronic materials Manufacture and sale of aluminum Kobe Aluminum Automotive TEL: +1-270-842-6492 forgings for automotive suspensions Kentucky, USA 2003-5 60.0% Products, LLC FAX: +1-270-846-4648 and aluminum cast rods for compressors Manufacture and sale of aluminum Kobelco Aluminum Kentucky, USA — 2016-4 100.0% extrusions and fabricated products Products & Extrusions Inc. for automotive bumpers and frames Kobe Electronics Material Ayutthaya, TEL: +66-35-314-070 Copper coil slitting, sale of copper 2001-9 100.0% (Thailand) Co., Ltd. Thailand FAX: +66-35-314-065 strip for electronic materials Kobe Precision Technology Manufacture and sale of aluminum Penang, Malaysia TEL: +60-4362-7222 1992-2 100.0% Sdn. Bhd. substrates for hard disks Kobelco & Materials Manufacture and sale of copper TEL: +60-3-5191-2601 Copper Tube (Malaysia) Ehsan, Malaysia 1987-10 100.0% tubes for air conditioning, freezing FAX: +60-3-5191-2611 Sdn. Bhd. and refrigerating Manufacture and sale of copper Kobelco & Materials TEL: +66-3896-1962 tubes for air conditioning, freezing Copper Tube (Thailand) Rayong, Thailand 1996-11 100.0% FAX: +66-3896-1965 and refrigerating and of fabricated Co., Ltd. piping parts TEL: +65-6261-0788 Singapore Kobe Pte. Ltd. Singapore 1976-8 100.0% Manufacture and sale of leadframes FAX: +65-6265-7926 Machinery Kobelco Compressors TEL: +86-21-3996-6392 Shanghai, China 2000-10 96.8% Sale of standard compressors (Shanghai) Corporation FAX: +86-21-3996-6389, 6390 Kobelco Compressors TEL: +86-21-3996-6381 Manufacture and sale of standard Manufacturing (Shanghai) Shanghai, China 2004-2 100.0% FAX: +86-21-3996-6380 compressors Corporation Kobelco Machinery System Marketing and after-sales service of Engineering Qingdao Co,. Shandong, China TEL: +86-532-8908-1980 2015-12 100.0% tire, rubber and plastic process Ltd. machinery Shinwa Wood Works (Wuxi) Packaging for the Chinese market Jiangsu, China TEL: +86-510-8536-5669 2013-6 100.0% Co., Ltd. and export Beijing Kobelion Kobelco TEL: +86-10-6771-0301 Beijing, China 2011-1 100.0% Sale of standard compressors Compressors Corporation FAX: +86-10-6771-0367, 0357 TEL: +86-510-8502-4889 Investment Design, manufacture and sale of Wuxi Compressor Co., Ltd. Zhejiang, China 44.3% FAX: +86-510-8501-9865 2012-4 compressors Yiyang Yishen Rubber TEL: +86-737-620-3330 Manufacture, sale and service of tire Hunan, China 1995-9 25.0% Machinery Co., Ltd. FAX: +86-737-620-3035 curing presses KOBELCO Advanced TEL: +1-847-520-6000 Illinois, USA 2006-8 100.0% PVD toll coating services Coating (America), Inc. FAX: +1-847-520-6222 Manufacture, sale, after-sales service Kobelco Advanced Busan, South TEL: +82-51-205-0794 2013-6 50.0% and maintenance of industrial Lube-system Asia Co., Ltd. Korea machinery and compressor LO units Manufacture and sale of process Kobelco Compressors TEL: +1-951-739-3030 gas compressor systems, refrigera- California, USA 2006-2 100.0% America, Inc. FAX: +1-951-739-3029 tion systems, pressure vessels and heat exchangers
50 COMPANY NAME LOCATION TEL / FAX ESTABLISHED EQUITY SHARE BUSINESS Kobelco Compressors TEL: +1-574-295-3145 Acquisition Manufacture and sale of screw Indiana, USA 100.0% Manufacturing Indiana, Inc. FAX: +1-574-293-1641 1988-9 compressors Kobelco Compressors India Marketing, sale and after-sales Haryana, India TEL: +91-124-4380750 2015-9 97.5% Pvt. Ltd. service of standard compressors Kobelco Compressors Selangor, Malaysia TEL: +60-3-5636-0586 2003-9 100.0% Marketing and service of compressors (Malaysia) Ltd. Kobelco Compressors Bangkok, Thailand TEL: +66-2-308-0211 2015-7 100.0% Marketing and service of compressors (Thailand) Ltd. Kobelco Compressors Hanoi, Vietnam TEL: +84-4-3944-7781 2011-4 100.0% Marketing and service of compressors (Vietnam) Ltd. Kobelco Machinery Asia TEL: +65-6261-5807 Sale and service of standard Singapore 1999-8 100.0% Pte. Ltd. FAX: +65-6261-3719 compressors and industrial machinery Kobelco Machinery do Marketing, sale and after-sales Sao Paulo, Brazil TEL: +55-11-2186-0265 2013-11 100.0% Brasil Ltda. service of nonstandard compressors Kobelco Machinery Europe Sale of nonstandard compressors, Munich, Germany TEL: +49-89-5434-478-0 2012-7 100.0% GmbH parts procurement Kobelco Machinery India TEL: +91-33-4011-5222 Marketing and sales support of West Bengal, India 2008-11 90.0% Pte. Ltd. FAX: +91-33-4011-5223 steelmaking equipment Kobelco Machinery Middle After-sales service of nonstandard Dubai, UAE TEL: +971-4-238-4009 2012-7 100.0% East FZE. compressors Kobelco Stewart Bolling, TEL: +1-330-655-3111 Acquisition Manufacture and sale of tire and Ohio, USA 100.0% Inc. FAX: +1-330-656-9724 1989-6 rubber machinery L&T Kobelco Machinery Manufacture and sale of rubber Kobelco CranesTamil Nadu, India TEL: +91-44-6720-2300 2010-11 49.0% Pte. Ltd. mixers and twin-screw extruders Engineering Midrex Metallurgy Marketing and sales promotion of Shanghai, China TEL: +86-21-60101294 2011-5 100.0% Technology Services DRI processes (Shanghai) Ltd. Design, construction and mainte- Kobelco Eco-solutions Ho Chi Minh City, TEL: +84-8-3899-1355 nance management of water, 2010-11 100.0% Vietnam Co., Ltd. Vietnam FAX: +84-8-3899-1525 sewage and waste treatment plants; manufacture of glasslined equipment North Carolina, TEL: +1-704-373-1600 Acquisition Engineering services for DRI Midrex Technologies, Inc. 100.0% USA FAX: +1-704-373-1611 1983-8 processes Midrex Technologies India Marketing and sales promotion of Haryana, India TEL: +91-124-4908712 2011-7 100.0% Pte. Ltd. DRI processes Marketing and sales promotion of London, UK TEL: +44-207-0891520 2009-5 100.0% Midrex UK Ltd. DRI processes Construction Machinery Chengdu Kobelco TEL:+028-8841-2188 Sales and service operations of Construction Machinery Chengdu, China 2003-7 56.3% FAX:+028-8841-2166 construction machinery in China Group Co., Ltd. Chengdu Kobelco TEL: +86-028-8842-3580 Construction Machinery Chengdu, China 1994-9 88.7% Manufacture of hydraulic excavators FAX: +86-028-8842-3664 Co., Ltd. Chengdu Kobelco TEL:+028-8841-2070 Leasing of hydraulic excavators and Construction Machinery Chengdu, China 2008-2 76.0% FAX:+028-8841-2071 related equipment in China Financial Leasing Ltd. Hangzhou Kobelco TEL: +86-571-2889-6588 Construction Machinery Zhejiang, China 2003-12 50.7% Manufacture of hydraulic excavators FAX: +86-571-2889-6566 Co., Ltd. Kobelco Precision TEL:+0571-2889-3025 Manufacture and sales operations of Machinery Hangzhou Co., Zhejiang, China 2010-12 100.0% FAX:+0571-2889-3028 construction machinery parts Ltd. Kobelco Cranes (Shanghai) TEL: +86-21-5382-0120 Sales and service operations of Shanghai, China 2010-2 100.0% Co., Ltd. FAX: +86-21-5382-2090 cranes in China
3951 COMPANY NAME LOCATION TEL / FAX ESTABLISHED EQUITY SHARE BUSINESS Manufacture, sales and service Kobelco Construction On the outskirts of TEL: +91-120-4079900 2006-11 95.0% operations of hydraulic excavators in Equipment India Pvt. Ltd. Delhi, India FAX: +91-120-4079999 India Kobelco Construction Sales and service operations of New South Wales, TEL: +61-2-8863-4900 Machinery Australia Pty. 2001-8 100.0% construction machinery in Australia Australia FAX: +61-2-8863-4999 Ltd. and New Zealand Sales and service of construction Kobelco Construction Flevoland, TEL: +31-36-2020-300 2013-6 100.0% machinery in Europe, Russia-CIS, Machinery Europe B.V. Netherlands Maghreb, West Africa and Israel Kobelco Construction TEL: +60-3-5192-7533 Sales and service operations of Machinery Malaysia Sdn. Selangor, Malaysia 1982-12 100.0% FAX: +60-3-5192-5855 construction machinery in Malaysia Bhd. Kobelco Construction TEL: +84-61-3834-656 Sales and service operations of Machinery Vietnam Co., Dong Nai, Vietnam 2004-6 100.0% FAX: +84-61-3834-665 construction machinery in Vietnam Ltd. Manufacture of hydraulic excavators, Kobelco Construction sales and service operations of Texas, USA TEL: +1-281-888-8430 2001-7 100.0% Machinery U.S.A. Inc. construction machinery in North, Central and South America Kobelco Cranes Europe TEL: +44-1342-301122 Sales and service operations of West Sussex, UK 2003-9 100.0% Ltd. FAX: +44-1342-326987 cranes in Europe Kobelco Cranes India Pvt. TEL: +91-11-40151900 Manufacture, sales and service New Delhi, India 2010-8 99.8% Ltd. FAX: +91-11-40151952 operations of cranes in India Sales and service operations of Kobelco Cranes North TEL: +1-713-856-5755 Texas, USA 2003-11 100.0% cranes in North, Central and South America Inc. FAX: +1-713-856-9072 America Kobelco Cranes South East TEL: +65-6268-1308 Sales and service operations of Singapore 2007-6 100.0% Asia Pte. Ltd. FAX: +65-6268-2490 cranes in Southeast Asia Sales and service operations of Kobelco International (S) TEL: +65-6268-8200 Singapore 1999-9 100.0% construction machiner y in South- Co., Pte. Ltd. FAX: +65-6261-3719 east Asia P.T. Daya Kobelco South Jakarta, TEL: +62-21-7592-2828 Sales and service operations of Construction Machinery 2000-11 100.0% Indonesia FAX: +62-21-7592-2822 construction machinery in Indonesia Indonesia TEL: +65-6862-2401 Sales and service operations of Ricon Private Limited Singapore 1975-4 75.0% FAX: +65-6861-5828 construction machinery in Singapore Thai Kobelco Construction TEL: +66-3895-0040-44 Rayong, Thailand 1996-2 100.0% Manufacture of hydraulic excavators Machinery Ltd. FAX: +66-3895-0045-46 Other Businesses Kobelco Logistics TEL: +86-21-6473-0982 International freight forwarding of Shanghai, China 2011-6 100.0% (Shanghai) Ltd. FAX: +86-21-6473-0171 import/export cargo Precision processing of conveyor parts for vacuum equipment for Kobelco Precision Parts TEL: +86-512-8187-8277 Jiangsu, China 2010-12 80.0% manufacturing LCDs, semiconduc- (Suzhou) Co., Ltd. FAX: +86-512-8187-8272 tors and solar panels; bonding of target materials for LCD panels Shanghai, China Import/export and trading of iron, Beijing, China steel, raw materials, nonferrous Kobelco Trading Guangzhou, China TEL: +86-21-5396-6464 2006-9 100.0% metals, machinery, welding materi- (Shanghai) Co., Ltd. Chengdu, China FAX: +86-21-5396-5975 als, and products for the information Dalian, China industry Wuhan, China International trade, trade consulting, Shanghai Shinsho Trading TEL: +86-21-5396-6464 Shanghai, China 1998-4 100.0% proxy services in bonded district, Co., Ltd. FAX: +86-21-5396-5975 and commercial simple processing Cutting, chamfering, cold forging Shinsho Osaka Seiko TEL: +86-513-8919-1055 and shaving of special steel round Jiangsu, China 2013-1 55.0% (Nangtong) Corporation FAX: +86-513-8919-1056 bars, and import/export and trading of these products
52 COMPANY NAME LOCATION TEL / FAX ESTABLISHED EQUITY SHARE BUSINESS Suzhou Shinko-Shoji TEL: +86-512-6287-1233 Slitting, shearing and sale of Jiangsu, China 2006-7 100.0% Material Co., Ltd. FAX: +86-512-6287-1231 aluminum sheet Employee training, human resource Beijing Oriental Shentong TEL: +86-10-6777-1333 development and consulting, Beijing, China 2004-4 33.3% Expert Training Co., Ltd. FAX: +86-10-6597-4448 publishing, and employment screening Michigan, USA Trading, import/export of steel, Shinsho American California, USA TEL: +1-248-675-5569 ferrous raw materials, nonferrous 1966-8 100.0% Corporation South Carolina, FAX: +1-248-675-5575 metal products and electronic USA materials Bangkok, Thailand Bowin, Thailand Trading, import/export of steel, Ayutthaya, TEL: +66-2-254-7645 ferrous raw materials, nonferrous Thai Escorp Ltd. 1988-5 100.0% Thailand FAX: +66-2-254-7644 metals, machinery and welding Amata Nakorn, materials Thailand
3953 Kobe Steel Business Locations
Head Offi ces / Branch Offi ces / Sales Offi ces Kobe Head Offi ce 2-4, Wakinohama-Kaigandori 2-chome, Chuo-ku, Kobe, Hyogo 651-8585, Japan Tel. +81-78-261-5111 Fax. +81-78-261-4123 ON Building, 9-12, Kita-Shinagawa 5-chome, Shinagawa-ku, Tokyo 141-8688, Tel. +81-3-5739-6000 Fax. +81-3-5739-6903 Tokyo Head Offi ce Japan Midosuji Mitsui Building, 1-3, Bingomachi 4-chome, Chuo-ku, Osaka, Osaka Tel. +81-6-6206-6111 Fax. +81-6-6206-6101 Osaka Branch Offi ce 541-8536, Japan Nagoya Prime Central Tower 15th Floor, 27-8, Meieki 2-chome, Nishi-ku, Nagoya, Tel. +81-52-584-6111 Fax. +81-52-584-6105 Nagoya Branch Offi ce Aichi 451-0045, Japan Nippon Seimei Kitamonkan Building, 1-3, Kita-Shijo Nishi 5-chome, Chuo-ku, Tel. +81-11-261-9331 Fax. +81-11-251-2533 Hokkaido Sales Offi ce Sapporo, Hokkaido 060-0004, Japan Sendai NS Building, 2-25, Ichibancho 1-chome, Aoba-ku, Sendai, Miyagi Tel. +81-22-261-8811 Fax. +81-22-261-0762 Tohoku Sales Offi ce 980-0811, Japan Nippon Seimei Niigata Building, 4-10, Higashiodori 2-chome, Chuo-ku, Niigata, Tel. +81-25-245-8681 Fax. +81-25-243-1645 Niigata Sales Offi ce Niigata 950-0087, Japan Hokuriku Sales Offi ce Urban Place, 18-7, Ushijimacho, Toyama, Toyama 930-0858, Japan Tel. +81-76-441-4226 Fax. +81-76-442-4088 Takamatsu Kogin Building, 6-8, Bancho 1-chome, Takamatsu, Kagawa 760-0017, Tel. +81-87-823-7222 Fax. +81-87-823-7333 Shikoku Sales Offi ce Japan Meiji Yasuda Seimei Hiroshima Building 11th Floor, 4-25, Fukuromachi, Naka-ku, Tel. +81-82-258-5301 Fax. +81-82-258-5309 Chugoku Sales Offi ce Hiroshima, Hiroshima 730-0036, Japan Shinkansen Hakata Building, 1-1, Hakataeki Chuogai, Hakata-ku, Fukuoka, Tel. +81-92-431-2211 Fax. +81-92-432-4002 Kyushu Sales Offi ce Fukuoka 812-0012, Japan Naha Shintoshin Media Building-West, 3-31, Omoromachi 1-chome, Naha, Tel. +81-98-866-4923 Fax. +81-98-869-6185 Okinawa Sales Offi ce Okinawa 900-0006, Japan Takasago Works 3-1, Araicho Shinhama 2-chome, Takasago, Hyogo 676-8670, Japan Tel. +81-79-445-7111 Fax. +81-79-445-7231 Research Laboratories Kobe Corporate 5-5, Takatsukadai 1-chome, Nishi-ku, Kobe, Hyogo 651-2271, Japan Tel. +81-78-992-5600 Fax. +81-78-992-5532 Research Laboratories Works and Plants Kakogawa Works 1, Kanazawacho, Kakogawa, Hyogo 675-0137, Japan Tel. +81-79-436-1111 Fax. +81-79-436-1400 Research & 2222-1, Onoecho Ikeda, Kakogawa, Hyogo 675-0023, Japan Tel. +81-79-427-5000 Fax. +81-79-427-5072 Development Laboratory Kobe Works 2, Nadahama Higashicho, Nada-ku, Kobe, Hyogo 657-0863, Japan Tel. +81-78-882-8030 Fax. +81-78-882-8290 Fujisawa Plant 100-1, Miyamae, Fujisawa, Kanagawa 251-8551, Japan Tel. +81-466-20-3111 Fax. +81-466-20-3115 Ibaraki Plant 2-19, Higashi-Unobecho, Ibaraki, Osaka 567-0879, Japan Tel. +81-72-621-2111 Fax. +81-72-621-2015 Saijo Plant 6400-1, Saijocho Misonou, Higashi-Hiroshima, Hiroshima 739-0024, Japan Tel. +81-82-423-3311 Fax. +81-82-420-0038 Fukuchiyama Plant 36, Osadanocho 3-chome, Fukuchiyama, Kyoto 620-0853, Japan Tel. +81-773-27-2131 Fax. +81-773-27-6358 Moka Plant 15, Kinugaoka, Moka, Tochigi 321-4367, Japan Tel. +81-285-82-4111 Fax. +81-285-84-0231 Chofu Works 14-1, Chofu Minatomachi, Shimonoseki, Yamaguchi 752-0953, Japan Tel. +81-83-246-1211 Fax. +81-83-246-1271 Daian Plant 1100, Daiancho Umedo, Inabe, Mie 511-0284, Japan Tel. +81-594-77-0330 Fax. +81-594-77-2249 Harima Plant 41, Niijima, Harimacho, Kako-gun, Hyogo 675-0155, Japan Tel. +81-79-436-2101 Fax. +81-79-436-2199 Overseas Offi ces Kobe Steel USA Inc. (U.S. headquarters, New York head offi ce) Tel. +1-212-751-9400 Fax. +1-212-355-5564 NEW YORK 535 Madison Avenue, 5th Floor, New York, NY 10022, U.S.A. Kobe Steel USA Inc. (U.S. headquarters, Detroit branch) Tel. +1-734-462-7757 Fax. +1-734-462-7758 DETROIT 19575 Victor Parkway, Suite 250 Livonia, MI 48152, U.S.A. Kobe Steel Asia Pte. Ltd. (Singapore head offi ce) SINGAPORE Tel. +65-6221-6177 Fax. +65-6225-6631 72 Anson Road, #11-01A Anson House, Singapore 079911, Republic of Singapore Kobe Steel Asia Pte. Ltd. (Hong Kong offi ce) Tel. +852-2865-0040 Fax. +852-2520-6347 HONG KONG Room 1604, MassMutual Tower, 38 Gloucester Road, Wanchai, Hong Kong Kobe Steel, Ltd. Bangkok Offi ce Tel. +66-2636-8971 10th Floor, Sathorn Thani Tower ll, 92/23 North Sathorn Road, Khwaeng Silom, Fax. +66-2636-8675 BANGKOK to 8974 Khet Bangrak, Bangkok 10500, Kingdom of Thailand Kobelco (China) Holding Co., Ltd. (China headquarters, investment company) SHANGHAI Room 3701, Hong Kong New World Tower, No. 300 Middle Huaihai Road, Luwan Tel. +86-21-6415-4977 Fax. +86-21-6415-9409 District, Shanghai 200021, People’s Republic of China
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