June 6, 2008
Groundbreaking Ceremony to Relocate the Business Base in Chengdu, Sichuan Province, China

On June 6, the groundbreaking ceremony was performed for relocation of the business base in Chengdu, China by the three joint ventures of Kobelco Construction Machinery Co., Ltd (Kobelco) (Head office: Shinagawa-ku, Tokyo; President & CEO: Hiroo Shimada), a group company of Kobe Steel: Chengdu Kobelco Construction Machinery Group Co., Ltd. (CKCMG), Chengdu Kobelco Construction Machinery Co., Ltd. (CKCM), and Chengdu Kobelco Mini Excavator Co., Ltd. (CKME). The ceremony was attended by 2,000 persons, including many high officers invited from the Sichuan Provincial Government and the Chengdu Municipal Government.

The above three companies were authorized as “Ten Billion Yuan Project Companies” by the Chengdu Municipal Government. Under the urban redevelopment program policy formulated by the Government, the companies signed the business base relocation program agreement on December 19, 2007. Since then, the preparations have been going on smoothly.

In his greeting speech representing the Japan side, President/Chief Executive Director & Representative Director of Kobe Steel, Ltd., Yasuo Inubushi said, “Under the guidance from the Sichuan Provincial Government and the Chengdu Municipal Government, the Chengdu Kobelco Group companies were authorized as Ten Billion Yuan Project companies, and have finally held the groundbreaking ceremony today.” “As a company that has suffered greatly in the earthquake of Kobe and has successfully recovered from the devastation, we would like to continually provide support in various ways for smooth reconstruction of this area.”

Although it was soon after the earthquake in Sichuan Province, the companies determined to hold the ceremony as planned in order to start the relocation project on schedule as one way to promote reconstruction. The Chengdu Municipal Government also strongly requested the companies to perform the ceremony as scheduled for the first step toward the reconstruction.

The three companies that will relocate their business base are as follows.

Their new business base is located in the Chengdu Economic & Technological Development Zone (National Level Development Zone) at Long Quan District, Chengdu City, a fifteen minutes’ drive from the current location. In the middle of 2009, part of their plants will start operation, and the relocation will be completed by the beginning of 2010. This investment is estimated to be more than 10 billion yen. The details of the investment will be formally determined around July 2008. The detailed plan will be released soon after the formulation.

This relocation will contribute to early recovery of Chengdu City from the devastation of the quake and promotion of its city planning. The companies continue to pursue the plan steadily.

Groundbreaking Ceremony June 6, 2008
L:The chairman of Chengdu , Li Chunｃheng
R: President/Chief Executive Director & Representative Director of Kobe Steel, Ltd., Yasuo Inubushi