April 11, 2008 -- Kobe Steel Ltd. is raising production capacity by 100 percent for automobile-use aluminum paneling in order to meet growing demand as automakers seek to make cars lighter. The steelmaker will invest ¥800 million to upgrade a continuous tempering furnace and other production equipment at its Tochigi Prefecture main production site, which turns out aluminum panels used in car doors and hoods. By year-end, it aims to double aluminum panel production capacity to 4,000 tons a month compared to its current output of 1,500 tons.
With demand growing an annual 20-30 percent, the firm decided to expand capacity because otherwise demand could outstrip the plant's capacity in another year or two. Automakers are increasingly using aluminum in luxury automobiles because it weighs only a third as much as steel. Fuel economy improves around 3 percent for each 100kg reduction in vehicle weight.
Abstracted from Asia Pulse
