Kobe Steel Adds China Subsidiary
By DJ Slater03 June 2020
Kobe Steel, Ltd. has turned its Chinese affiliate Wuxi Compressor Co. Ltd. into a subsidiary following its acquisition of that company’s shares in April. Wuxi Compressor, based in Wuxi, Jiangsu Province, China, manufactures, designs and sells process gas compressors used in natural gas plants, petroleum refining and chemical plants.
In 2011, Kobe Steel purchased a 44.3% equity share of Wuxi Compressor from Wuxi Victor Group. Through Kobe Steel, Wuxi Compressor improved its manufacturing, design and sales capabilities. Kobe Steel approached Wuxi Victor again this year to obtain an additional 25.7% stake in Wuxi Compressor, making it into a 70%-owned subsidiary.
With subsidiary status, Kobe Steel can enhance its presence and service capabilities in China, as well as meet the country’s demand for process gas compressors. The company has manufacturing locations for process gas compressors in Japan, the United States and China, along with sales and service locations in Germany, the United Arab Emirates, Brazil, the Philippines and Singapore.