Kobe Steel Ltd. has invested 40 million yen to open a Chinese company to sell tire and rubber machinery in April.
The company, Kobelco Machinery System Engineering Qingdao Co. Ltd. (KMQ), will be headquartered in Qingdao, Shangdong Province, and will also provide after-sales service.
KMQ will supply rubber mixers, twin screw roller head extruders and tire testing machines used to manufacture passenger car tires, as well as construction equipment and other rubber products.
KMQ was established to contribute to the expanding sales in China and Kobe Steel is aiming for a 50% share of the world market, the company said.
KMQ is projected to increase overall sales by 1 billion yen in fiscal 2020. KMQ has manufacturing and sales bases in Japan, the United States, China and India.