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Spin-Offs | December 2016

Kobe Steel’s compressor company begins marketing in India

Kobe Steel Ltd announces that it has established a subsidiary company in India called Kobelco Compressors India Pvt Ltd (KCIN). KCIN has begun full-scale marketing of standard air compressors very recently. Kobe Steel’s standard compressor business has large market shares in Japan and ASEAN countries.

Kobe Steel anticipates that KCIN will further contribute to growing its share of the world market. In three years, KCIN anticipates cumulative sales of 500 units. In the future, KCIN aims to achieve sales of 1,500 units per year in India.

Standard compressors are mainly used in factories to provide compressed air for powering equipment and machinery, painting, powder conveying and other applications. This utility equipment is widely used in numerous industries. With a global market scale of $9 billion, the Indian compressor market of $250 million is anticipated to double in the next several years, according to Kobe Steel projections.

To capture a share of the Indian market, Kobe Steel saw the need for a local presence and formed KCIN. KCIN has now begun full-scale sales activities and is marketing the Kobelion series of screw compressors, which are noted for their high efficiency and energy-saving features. In Japan, the Kobelion series has gained a 30-percent share of the market and is highly regarded for its reliability.

Kobe Steel has built up a global network to market and service its standard compressors. Kobe Steel currently has manufacturing locations in three countries: Japan, the USA and China. Sales locations have been established in Singapore, Indonesia, Malaysia, the Philippines, Vietnam and Cambodia. The addition of KCIN will also further improve access to the Middle East and enhance marketing and after-sales service in the region.

In addition, Kobe Steel is the only comprehensive compressor manufacturer in the world that can supply centrifugal, reciprocating and screw compressors. Kobe Steel has an estimated 50 per cent share of the world market for these nonstandard screw compressors, or custom-engineered process compressors.

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