Kobe Steel, Mitsui and Toyota Tsusho Sign Joint Venture Agreement to Produce Aluminum Suspension Forgings in the United States
JapanCorp: <http://www.japancorp.net/?page_num=1> Kobe Steel, Mitsui and Toyota Tsusho Sign Joint Venture Agreement to Produce Aluminum Suspension Forgings in the United States Tokyo, Japan, July. 12, 2003 - (JCN Newswire) - Kobe Steel, Ltd., Mitsui & Co., Ltd. and Toyota Tsusho Corporation signed a joint venture agreement on July 9 to manufacture and market aluminum forgings for automobile suspension systems in the United States. Through a joint venture called Kobe Aluminum Automotive Products LLC, the three companies will be better able to meet the growing market for automotive aluminum forgings in North America. Kobe Steel will have a 60% share in the joint venture, Mitsui 25% and Toyota Tsusho 15%. The new company, to be based in Bowling Green, Kentucky, USA, will be capitalized at $14 million. Kobe Aluminum Automotive Products will have a production facility and an office building totaling 108,000 square feet (10,000 sq m) on 32.6 acres (130,000 sq m) of land. The plant will have continuous casting equipment, 6,300-ton mechanical forging presses, and heat treatment equipment. Kobe Aluminum Automotive Products is expected to employ 78 people. Total investments are anticipated to reach $32.7 million. Construction of the facility is scheduled to begin next month and production is anticipated to begin in June 2005. The new company will market its products to U.S. automakers and Japanese transplants. Annual sales are forecast to reach $25 million in 2006, the second year of operation. Kobe Steel, which has a roughly 90% share of the Japanese market for aluminum forgings for automotive suspensions, will be responsible for the manufacturing, quality assurance and business aspects of the joint venture. Trading firms Mitsui and Toyota Tsusho will market the products to U.S. automakers and Japanese transplants. Fitted with more safety devices and options, cars have been growing heavier. At the same time, they need to be lighter to help meet environmental regulations. Automakers are using increasing quantities of lighter parts, one of which is aluminum forgings for suspension systems. With the market forecast to grow, situating a manufacturing facility in the United States is anticipated to stimulate new demand in North America. Japanese automakers use domestically produced aluminum forged parts in suspensions, but have been increasing their global procurement of parts. In manufacturing world cars, they are increasing their local sourcing of parts both in Japan and the United States. Following these market changes, Kobe Steel concluded that a production base in North America would be essential to meet the increasing need for aluminum forged parts from not only Japanese automotive transplants, but also the U.S. automakers. About Kobe Steel, Ltd. Kobe Steel, Ltd. is one of Japan's leading steelmakers and producers of aluminum and copper products. Other businesses include welding consumables, infrastructure and plant engineering, machinery, and real estate.For further information, please visit the Kobe Steel, Ltd. home page at: www.kobelco.co.jp/index_e_wi.htm <http://www.kobelco.co.jp/index_e_wi.htm> About Toyota Tsusho Corporation Toyota Tsusho Corporation was established in 1948 and is the trading arm of the Toyota group. General trader of iron and steel. Operations are carried out through the following divisions: metals, machinery and information, industrial vehicles, industrial materials, lifestyle products and others. Metals accounted for 47% of 2000 revenues; machinery and information, 19%; industrial vehicles, 13%; industrial materials, 12%; lifestyle products 8% and others 1%.For further information, please visit the Toyota Tsusho Corporation home page at: www.toyotsu.co.jp/English/index.html <http://www.toyotsu.co.jp/English/index.html> Contact Gary I. Tsuchida Communication Center Kobe Steel, Ltd. 9-12 Kita-Shinagawa 5-chome Shinagawa-ku, Tokyo 141-8688 Japan Tel +81 (0)3 5739-6010 Fax +81 (0)3 5739-5971 E-mail www-admin@kobelco.co.jp Web site www.kobelco.co.jp/index_e_wi.htm _____ July. 12, 2003, 18:54 (JST) Source: Kobe Steel, Ltd. Kobe Steel, Ltd. www.kobelco.co.jp/index_e_wi.htm <http://www.kobelco.co.jp/index_e_wi.htm> Toyota Tsusho Corporation www.toyotsu.co.jp/English/index.html <http://www.toyotsu.co.jp/English/index.html> From the Japan Corporate News Network www.japancorp.net <http://www.japancorp.net> Topic: Construction of Facility Sectors: Auto Manufacturing, Auto Parts & Equipment © 2003 JCN Newswire. A division of Japan Corporate News Network KK. All rights reserved.