Process Change on Valve Spring Quality (Super Clean) Wire …

1 Process ChangeonValve Spring Quality ( super Clean) wire RodKobe Steel, 20, 2013 confidentialReforming the Structure of the Steel BusinessReforming the Structure of the Steel Businessconfidential kobe Steel s steel business faces an extremely harsh business environment, and it is necessary to implement radical changes to strengthen the company s competitiveness. To build an optimum production system that will meet the demand trends over the medium to long term future and to further streamline operations, upstream production at kobe Works will be transferred to Kakogawa Works around fiscal 2017. At the present, engine Valve Spring material has been manufactured at kobe Works only. KobeWorksKakogawaWorksCrude Steel Capacity : million tons/yearProducts : wire rods, BarsKobe WorksKakogawa WorksCrude Steel Capacity: million tons/yearProducts : wire rods, Sheets, PlatesProduction approval will be required.

2 kobe BFpretreatmentLD converterLadle BloomingLadle CCVolume2,112m3 Volume5,400m3 Volume4, CCbuild BloomingNew CC#1 & #2 millHot strip millPlate millKakogawa WorksAiming at fiscal 2017, kobe plans to shut down the upstream wire rod wire rod millNew Ladle refininginstallconfidentialBillets manufactured at Kakogawa Works are transferred to kobe FlowProcess FlowBillet conditioningpretreatmentLD converterLadle refiningBillet conditioning kobe Steel will close upstream Process at kobe Works and transfer its Process to Kakogawa Works around FY2017. Sample for approval will be available after February 2014. Trial run has been already implemented at Kakogawa Works and good results have been obtained. We highly appreciate your cooperation to get approval for our Process Integration ofupstream processevaluation for approvalTrial run at Kakogawa Worksminor modification of bloom casterSummary and ScheduleSummary and ScheduleThank you for your attention!

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