An inside view of Wuxi Compressor’s plant (Source: Kobe Steel)
Kobe Steel, Ltd. (Tokyo, Japan) has turned its Chinese affiliate, Wuxi Compressor Co., Ltd., into a subsidiary after acquiring additional shares in the company in April 2020. Based in Wuxi, Jiangsu Province, Wuxi Compressor manufactures designs and sells non-standard (process gas) compressors, a core component used in petroleum refining, chemical and natural gas plants.
In response to the growing demand for non-standard compressors in China, Kobe Steel acquired a 44.3% equity share of Wuxi Compressor from Wuxi Victor Group Co., Ltd. in 2011. With Kobe Steel’s equity participation, Wuxi Compressor began to improve its manufacturing, design and sales capabilities. Kobe Steel reached agreement with Wuxi Victor to acquire an additional 25.7% in Wuxi Compressor, turning it into a 70% owned subsidiary of Kobe Steel.
By turning Wuxi Compressors into a subsidiary, Kobe Steel will be able to provide more flexible business operations and further strengthen its marketing capabilities while offering more attentive service in China. It aims to meet the growing demand for non-standard compressors in China, as well as contribute to improving customer satisfaction.
The Kobe Steel Group has manufacturing locations for non-standard compressors in Japan, the U.S. and China, along with sales and service locations in Germany, the United Arab Emirates (UAE), Brazil, the Philippines and Singapore. By strengthening its Group operations with these bases, Kobe Steel aims to build an optimum manufacturing and sales structure to further expand its business.
Kobe Steel is one of the few manufacturers in the world that supply three types of major compressors: screw compressors, reciprocating compressors and centrifugal compressors. In particular, Kobe Steel has the world’s largest market share for non-standard screw compressors. Under its medium-term management plan, Kobe Steel is expanding its compressor business as a growth strategy of its Machinery Business.