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Home arrow News arrow Business News arrow Kobe Steel to set up welding company, develop new sources in India
Kobe Steel to set up welding company, develop new sources in India Print E-mail
Written by Ganesh   
Tuesday, 19 April 2011
New Delhi: Kobe Steel, Ltd. plans to establish a company - Kobelco Welding India Pvt. Ltd. - to sell welding consumables and provide sales support and maintenance services for welding robot systems in India. The company will be based in Gurgaon, Haryana state, about 30 kilometers southwest of New Delhi.

In addition to marketing, KWI will search for new sources of raw materials for welding consumables and support procurement. KWI will be capitalized at 5 million rupees (about 9 million yen).

The Welding Business intends to develop new sources of wire rod and fluxes, the raw materials used to make welding consumables. To strengthen its cost competitiveness, the Welding Business needs to find new suppliers of raw materials and support procurement.

KWI will enable the Welding Business to address the growing Indian market directly and provide the potential for further development.

Demand for welding consumables is growing significantly in India. As many power plants are planned to be constructed, demand for welding products in the energy field is expected to grow. Kobe Steel's Welding Business anticipates rising sales mainly for high value-added welding consumables*.

[*High value-added welding consumables are such products as welding consumables for heat-resistant, low-alloy steel; welding consumables for nickel-based alloys; welding consumables for stainless steel; and welding consumables for low-temperature steel. They are different from standard welding products, which include welding consumables for mild steel.]

"For Japanese users in the heavy electrical machinery, construction equipment and automotive fields that have already entered India or plan to do so in the future, it is urgently necessary to build a framework to provide total support in India for not only welding consumables, but also welding robot systems," the company said in a statement.

The new company is positioned as a strategic operation that will strengthen the Welding Business' marketing capabilities in India and promote effective marketing in coordination with operations in Southeast Asia.

Kobe Steel will hold an 80% share, while group companies Kobe Welding (Singapore) Pte. Ltd. will hold 10% and Taseto Co., Ltd. will hold the remaining 10%. The company will have a staff of five people, including two Japanese.

 
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