In a statement, Kobe said the investment provides for a new continuous annealing line with galvanizing and galvannealing capabilities as well as upgrades to an existing pickling line and tandem cold mill and associated material handling equipment. All told, the new equipment will boost capacity by 240,000 tons. 

Kobe said the project is meant to meet future demand for higher-strength automotive steels. 

“To meet stricter regulations for fuel efficiency and collision safety, automakers have been promoting lighter car bodies with higher strength in recent years. Rising demand for automotive high-strength steel and the need for functional improvements are anticipated to further increase in the future."

It plans to start up the new facility in February 2021.

The announcement coincides with Kobe's plans to expand its PRO-TEC joint venture with United States Steel Corporation in Ohio, USA, where it is adding a US$400 million continuous galvanizing line to make advanced, third-generation steels.