Kobe Steel to Invest in Plant Expansion at Kobelco Industrial Machinery India

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The expansion, projected to be completed in fiscal 2027, aims to substantially enhance production capacity and drive business growth, particularly in India's booming automotive sector.

July 2025 : Kobe Steel, Ltd. recently announced a significant investment of approximately 3 billion yen (approximately USD 18.75 million) for the expansion of its production plant at Kobelco Industrial Machinery India (KIMI), a wholly-owned subsidiary of Kobe Steel's Machinery Business division. The expansion, projected to be completed in fiscal 2027, aims to substantially enhance production capacity and drive business growth, particularly in India's booming automotive sector.

Established in 2010 as a joint venture with Larsen & Toubro (L&T) and becoming a wholly owned subsidiary in 2019, KIMI has steadily grown as a key manufacturing and sales hub for tire and rubber machinery (rubber mixers and extruders) in India and surrounding regions. The increasing demand for tire and rubber machinery, fueled by India's rising automotive production, is a primary driver for this strategic investment.

Alongside the plant expansion, KIMI will install new production facilities for non-standard compressors. This move marks Kobe Steel's expansion of non-standard compressor production into India, diversifying its manufacturing bases currently located in Japan, the United States, China, and South Korea. This diversification aims to enhance market expansion and cost competitiveness in sectors crucial for future energy transitions, facilitate entry into the Middle Eastern and African markets (including India), and mitigate country-specific risks.

Further strengthening its Indian footprint, Kobe Steel recently established the Kobelco Machinery Global Capability Center, Chennai (KMGC, Chennai), as the KIMI Chennai branch in January 2025. This new center has commenced design and development operations, specifically focusing on tire and rubber machinery and non-standard compressors.

By fully leveraging these expanded resources, Kobe Steel's machinery business is poised to significantly increase its presence in the global market, solidifying its foothold in India and striving to deliver greater customer satisfaction worldwide.

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