Kobe Steel to expand compressor operations in Germany, UAE

Kobe Steel plans to establish two 100%-owned companies in July, one in Europe and the other in the Middle East, to expand the global marketing and servicing of its compressors.

Kobelco Machinery Europe GmbH will be set up in Munich, Germany, to strengthen the marketing of Kobe Steel’s nonstandard compressors in Europe, the company said.

It will also procure parts for use in the manufacture of compressors in Japan.

The new subsidiary will be capitalized at €100,000 (about 10 million yen). Employees will increase from the current staff of seven to eight.

Meanwhile, Kobelco Machinery Middle East will be established in Dubai, United Arab Emirates.

To be located at Dubai Airport Freezone, the company says it will provide after-sales services for nonstandard compressors sold in the Middle East.

The unit will be capitalized at 1 million UAE dirhams (about 20 million yen). Employees will increase from the current three to five.

Kobe Steel currently has representative offices in Germany and the UAE. By turning these offices into companies, Kobe Steel will be able to strengthen compressor marketing, parts procurement and after-sales services, as well as increase its presence in the two regions, it said.

Kobe Steel says it is the world’s only comprehensive manufacturer that makes screw, centrifugal and reciprocating compressors.

The company estimates it has a 40% share of the world market for nonstandard screw compressors.

Nonstandard compressors are used in petrochemical plants, natural gas plants and other large facilities.

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