Kobe Steel announces that it has begun construction to expand the the Houston service plant of Kobelco Compressors America (KCA), the North American base for its non-standard compressor business.

Kobe Steel's machinery business segment is working to expand its overseas parts and maintenance business^*1 as part of a growth strategy to further stabilize earnings. KCA, the North American production and sales base for non-standard compressors, has provided after-sales service (parts supply, maintenance, etc.) to customers in North America, Central and South America. To better respond to customer demands, it has decided to expand its Houston service plant and increase capacity. 

This expansion will allow the company to strengthen its after-sales service for non-standard compressors across North and Central/South America, as well as provide after-sales services for the large mixing and pelletizing system Long Continuous Mixer (LCM) ^*2 units.

KCA has so far carried out repairs in a building with an airtight area^*3, a 30-ton crane, and small machine tools. The installation of warehouse and blast painting areas and new 50-ton and 30-ton cranes in the expanded area will enable repairs for large machinery in the plant. The enlarged section is scheduled to be operational by the end of fiscal 2025.

The Kobe Steel Group (also known as the Kobelco Group) will continue to provide solutions to the needs of society by creating new value through the provision of technologies, products, and services. We will proceed with our transformation into a company that appeals to all stakeholders, as we strive to realize a world in which people, now and in the future, can fulfill their hopes and dreams while enjoying safe, secure, and prosperous lives.

*1 Parts and maintenance business refers to after-sales service for delivered machinery products.

*2 LCM is a system used in the final segment of a plastic production line at a petrochemical complex to convert various plastic materials, such as polyethylene and polypropylene, into grain-sized pellets.

*3 The airtight area is a place to perform airtightness tests to ensure that there are no gas leaks from the compressor.