It has formed the joint venture with rolling producer Jiangsu Alcha Aluminium Co to expand its aluminium business in China.
They will build a 200kt/y facility in Baotou, Inner Mongolia to produce and sell coil and sheet for automobiles and beverage cans.
Both companies plan to sign the final agreement in spring 2012 and establish the site by January 2013.
Start up is expected in 2015 and will be 80% owned by Kobe Steel and 20% by Alcha
The jv will produce the same sheet available in Japan in an integrated operation, from melting and casting to hot rolling and cold rolling.
In the hot-rolling and cold-rolling stages, the joint venture plans to install equipment to produce some of the world’s largest coils.
Baotou is also close to abundant energy resources and has a good workforce.