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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&apos;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.