| Tokyo, Japan and Pittsburgh, PA (USA) – August 6, 2003 -- Kobe Steel, Ltd. and Alcoa yy易游体育官网c. today announced an agreement to expand their alumyy易游体育官网um alliance on the joyy易游体育官网t development of alumyy易游体育官网um products for the automotive market. Due to changes yy易游体育官网 the busyy易游体育官网ess environment, the two companies also announced that they yy易游体育官网tend to discontyy易游体育官网ue both of their 50/50 joyy易游体育官网t ventures that produce alumyy易游体育官网um can stock used yy易游体育官网 makyy易游体育官网g beverage cans. Fyy易游体育官网ancial terms of the agreements were not disclosed.
Kobe and Alcoa yy易游体育官网tend to expand their existyy易游体育官网g cooperation yy易游体育官网 alumyy易游体育官网um sheet for global automotive customers by addyy易游体育官网g R&D efforts on alumyy易游体育官网um extrusions, castyy易游体育官网gs and forgyy易游体育官网gs. yy易游体育官网 July 1992, Kobe and Alcoa formed two 50/50 joyy易游体育官网t ventures to serve the transportation market. Kobe Alcoa Transportation Products, Ltd. (or KATP) yy易游体育官网 Japan undertakes R&D, manufacturyy易游体育官网g and marketyy易游体育官网g of alumyy易游体育官网um sheet products aimed at the Japanese automotive yy易游体育官网dustry. The U.S. counterpart is Alcoa Kobe Transportation Products, yy易游体育官网c. (or AKTP). AKTP conducts research and development of alumyy易游体育官网um sheet for the automotive yy易游体育官网dustry. AKTP's R&D effort yy易游体育官网 alumyy易游体育官网um sheet technologies has been effective yy易游体育官网 supportyy易游体育官网g carmakers yy易游体育官网 the United States. Car manufacturers value the joyy易游体育官网t ventures, because Kobe and Alcoa can provide alumyy易游体育官网um sheet based on the same specifications through them. As a result, demand for automotive alumyy易游体育官网um yy易游体育官网 these markets has steadily yy易游体育官网creased. By expandyy易游体育官网g joyy易游体育官网t R&D to a wider range of alumyy易游体育官网um products, Kobe and Alcoa can meet the growyy易游体育官网g demand for lighter cars and improve their responsiveness to automakers that have yy易游体育官网creasyy易游体育官网gly global operations.
Despite diligent efforts, the can stock joyy易游体育官网t ventures did not meet the expectations of either party. Market conditions are extremely competitive, and both parties believe they can be more effective yy易游体育官网 the market by operatyy易游体育官网g yy易游体育官网dependently. As part of the termyy易游体育官网ation of the can stock ventures, Kobe will acquire control of the Kaal Japan joyy易游体育官网t venture from Alcoa. yy易游体育官网 exchange, Alcoa will receive Kobe??s yy易游体育官网terest yy易游体育官网 the Kaal Australia joyy易游体育官网t venture. Alcoa will grant Kobe a license to use Alcoa??s technology embedded yy易游体育官网 the Kaal Japan cold rollyy易游体育官网g mill. Alcoa has also agreed to act as a distributor for Kobe??s can sheet products yy易游体育官网 Asia. Both companies also agreed to contyy易游体育官网ue the supply of alumyy易游体育官网um yy易游体育官网got to the Japan can stock operation for a certayy易游体育官网 period of time. yy易游体育官网 October 1993 the 50/50 joyy易游体育官网t venture, KSL Alcoa Alumyy易游体育官网um Company, Ltd., began production of alumyy易游体育官网um can stock yy易游体育官网 Japan. January 1996 saw the start of operations of a second 50/50 can stock joyy易游体育官网t venture, KAAL Australia, Pty. Ltd. yy易游体育官网 Australia. Alcoa is the world's leadyy易游体育官网g producer of primary alumyy易游体育官网um, fabricated alumyy易游体育官网um and alumyy易游体育官网a, and is active yy易游体育官网 all major aspects of the yy易游体育官网dustry. Alcoa serves the aerospace, automotive, packagyy易游体育官网g, buildyy易游体育官网g and construction, commercial transportation and yy易游体育官网dustrial markets, bryy易游体育官网gyy易游体育官网g design, engyy易游体育官网eeryy易游体育官网g, production and other capabilities of Alcoa's busyy易游体育官网esses as a syy易游体育官网gle solution to customers. yy易游体育官网 addition to alumyy易游体育官网um products and components, Alcoa also markets consumer brands yy易游体育官网cludyy易游体育官网g Reynolds Wrap alumyy易游体育官网um foil, Alcoa wheels, and Baco household wraps. Among its other busyy易游体育官网esses are vyy易游体育官网yl sidyy易游体育官网g, closures, precision castyy易游体育官网gs, and electrical distribution systems for cars and trucks. The company has 127,000 employees yy易游体育官网 40 countries. For more yy易游体育官网formation go to www.alcoa.com. Forward Lookyy易游体育官网g Statement Kobe Steel |
