[Company analysis] Kobe Steel, Ltd. (神戸製鋼所)

「Kobe Steel, Ltd. (神戸製鋼所)」is a major Japanese steel company whose head office is located in Hyogo Prefecture. Together with「Nippon Steel Corporation(日本製鉄)」and「JFE Holdings, Inc.(JFEホールディングス)」, this company is one of the three major steel manufacturer in Japan. Mr. Abe, current Prime Minister of Japan had worked in this company, before he started political career. The number of consolidated employees is approximately 37,436.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Kobe Steel, Ltd.
Company name (Japanese)	神戸製鋼所
Date of establishment	Friday, September 1, 1905
Headquarters location	〒651-8585 神戸本社 兵庫県神戸市中央区脇浜海岸通二丁目2番4号, 〒141-8688 東京本社 東京都品川区北品川五丁目9番2号
Capital	250,900
Consolidated sales	1,971,869
Consolidated operating profit	48,282
Consolidated total assets	2,384,973
Consolidated capital	803,312
Capital adequacy ratio	33.7%
Consolidated number of employees	37,436

 

 

 

2. Summary and Features

 
The history of「Kobe Steel」started in 1905 when「Suzuki Shoten(鈴木商店)」purchased「Kobayashi Seikosho(小林製鋼所)」. After the Russia-Japanese War, thanks to the Japanese Navy's policy of fostering private factories, its scale was expanded steadily. Then, they started the aluminum business in 1937. As of 1955, this company initiated Japan's first production of titanium metal.

However, the damages by earthquake in Hyogo area and the stagnation of the Japanese steel industry was critical to 「Kobe Steel」, so they decided to expand their business territory not only limitted to the existing "steel" but also "out of steel". In other words, They have been focusing on business diversification. As a result, unlike the major steel companies in Japan, the steel business is comparatively low sales proportion. 

Normally, Japanese steel manufacturers are now concentrating on expanding business scale. But 「Kobe Steel」focus on developing high-value-added products for special applications for their steel business. And this steel business now accounts for around 40% of total sales. As for the material business, they hold a high market share for aluminum materials which is used for ship materials and transport equipment. And their machinery business is for screw-type non-general purpose compressors, and the electricity business boasts one of the largest power supply in Japan.

 

 

 

3. Major Business

 

■ Steel

■ Aluminum / Copper

■ Mechanical engineering

■ IPP (Wholesale electricity supply)

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,695,864	1,881,158	1,971,869
Consolidated operating profit		9,749	88,913	48,282
Consolidated total assets		2,310,435	2,352,425	2,384,973
Consolidated net assets		729,404	790,984	803,312
Breakdown of sales	Steel business	594,623	688,659	723,239
	Welding business	81,681	79,959	83,320
	Aluminum, copper business	322,453	348,463	358,332
	Machine business	139,625	153,121	161,272
	Engineering business	117,441	120,131	149,369
	Construction machinery business	310,358	364,500	385,964
	Electric power business	70,605	72,129	76,128
	Others	56,636	51,768	32,675
	Adjustments	2,439	2,423	1,566