Kobe Steel Ltd. will establish a new company in India this year to retail welding consumables and offer support and maintenance services for welding robot systems in that country. Kobelco Welding India Pvt. Ltd. (or KWI) will be launched in June with headquarters in Gurgaon, in Haryana state, about 30 kilometers southwest of New Delhi.

According to information released by the company, KWI will be 80% held by Kobe Steel, with group companies Kobe Welding (Singapore) Pte. Ltd. and Taseto Co. Ltd. hold 10% shares.

Similarly, last year Kobe Steel launched Kobe Welding of Shanghai Co. Ltd. as a wholly owned subsidiary to market welding consumables and welding robot systems and related parts, as well as provide robot maintenance service, to welding operations in China. Kobe Steel is a manufacturer with subsidiaries in a range of markets, including iron and steel, welding, aluminum and copper, machinery, natural resources and engineering, environmental solutions, construction equipment, and other businesses.

Demand for welding consumables is rising in India, in particular for the expanding electric utility industry. Kobe Steel’s Welding Business anticipates increased sales for high value-added welding consumables, including product for welding heat-resistant, low-alloy steel; welding consumables for nickel-based alloys; welding consumables for stainless steel; and welding consumables for low-temperature steel.

Another target for the new venture will be Japanese companies that are already active in India’s electrical machinery, construction equipment and automotive sectors, or plan to do so. They will benefit from a reliable supply system for welding consumables and welding robot systems.

In addition to marketing its welding products, Kobelco Welding India will seek new sources of raw materials for manufacturing wire rod and fluxes.

Kobe Steel said that KWI would help its Welding Business to address the growing Indian market directly and provide the potential for further development.