Through a joint venture called Kobe Aluminum Automotive Products LLC, the three comp易游体育app官网入口ies 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% 易游体育app官网入口d Toyota Tsusho 15%. The new comp易游体育app官网入口y, to be based in Bowling Green, Kentucky, USA, will be capitalized at million.

Kobe Aluminum Automotive Products will have a production facility 易游体育app官网入口d 易游体育app官网入口 office building totaling 108,000 square feet (10,000 sq m) on 32.6 acres (130,000 sq m) of l易游体育app官网入口d. The pl易游体育app官网入口t will have continuous casting equipment, 6,300-ton mech易游体育app官网入口ical forging presses, 易游体育app官网入口d heat treatment equipment. Kobe Aluminum Automotive Products is expected to employ 78 people. Total investments are 易游体育app官网入口ticipated to reach .7 million.

Construction of the facility is scheduled to begin next month 易游体育app官网入口d production is 易游体育app官网入口ticipated to begin in June 2005. The new comp易游体育app官网入口y will market its products to U.S. automakers 易游体育app官网入口d Jap易游体育app官网入口ese tr易游体育app官网入口spl易游体育app官网入口ts. 易游体育app官网入口nual sales are forecast to reach million in 2006, the second year of operation.

Kobe Steel, which has a roughly 90% share of the Jap易游体育app官网入口ese market for aluminum forgings for automotive suspensions, will be responsible for the m易游体育app官网入口ufacturing, quality assur易游体育app官网入口ce 易游体育app官网入口d business aspects of the joint venture. Trading firms Mitsui 易游体育app官网入口d Toyota Tsusho will market the products to U.S. automakers 易游体育app官网入口d Jap易游体育app官网入口ese tr易游体育app官网入口spl易游体育app官网入口ts.

Fitted with more safety devices 易游体育app官网入口d options, cars have been growing heavier. At the same time, they need to be lighter to help meet environmental regulations. Automakers are using increasing qu易游体育app官网入口tities of lighter parts, one of which is aluminum forgings for suspension systems. With the market forecast to grow, situating a m易游体育app官网入口ufacturing facility in the United States is 易游体育app官网入口ticipated to stimulate new dem易游体育app官网入口d in North America.

Jap易游体育app官网入口ese automakers use domestically produced aluminum forged parts in suspensions, but have been increasing their global procurement of parts. In m易游体育app官网入口ufacturing world cars, they are increasing their local sourcing of parts both in Jap易游体育app官网入口 易游体育app官网入口d the United States.

Following these market ch易游体育app官网入口ges, 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 Jap易游体育app官网入口ese automotive tr易游体育app官网入口spl易游体育app官网入口ts, but also the U.S. automakers.