Kobelco Invests 3 Billion Yen to Expand Rubber Machinery Production in India

On June 27, 2025, Japanese machinery manufacturer Kobelco announced a 3 billion yen (approximately 150 million RMB) investment to expand its rubber and tire equipment production operations in India. The initiative will be implemented at Kobelco Industrial Machinery India (Kimi), aiming to strengthen local production capabilities and support growing demand in the Indian market as the country’s automobile production surges.

The project, scheduled for completion by fiscal year 2027, will include the addition of facilities to produce custom compressors, such as reciprocating, screw, and turbo compressors. This marks a significant step as such compressors are currently manufactured only in Japan, the US, China, and South Korea. Kobelco aims to achieve manufacturing base diversification by expanding production to India.

This investment will also help Kobelco address energy transition-related market growth, improve cost competitiveness, and support its entry into the Middle East and African markets. Additionally, it is part of efforts to mitigate growing country-specific risks.

In January, Kobelco opened the Kobelco Machinery Global Capability Center (KMGC) in Chennai, which focuses on design and development of tire and rubber machinery as well as custom compressors. The company plans to leverage these new resources to enhance its global market influence from India.

The expansion aligns with the Kobelco-X transformation plan, which seeks to boost the profitability and growth potential of Kobelco’s machinery division. Originally established as a joint venture with Larsen & Toubro in 2010, Kimi became a wholly owned subsidiary in 2019 and has since steadily expanded its production of mixers and extruders for the tire and rubber industries.