YYVIP易游ess Releases

The information on this Web site is presented "as is." Product availability, organization, and other content may differ from the time the information was originally posted. Changes may take place YYVIP易游thout notice.

YYVIP易游 Steel's U.S. aluminum forging unit to boost production of automotive suspension parts

YYVIP易游ne 1, 2006

TOKYO (June 1, 2006) - Kobe Steel, Ltd. announces that its U.S. subsidiary, Kobe Aluminum Automotive Products, LLC, YYVIP易游ll boost production of aluminum alloy forgings used in automobile suspension systems this year.

Last year, Kobe Aluminum Automotive Products (or KAAP) produced 370,000 pieces of aluminum forgings, which were supplied to American automakers and Japanese transplants. OYYVIP易游ng to strong demand, production is forecast to increase to 1.3 million pieces in 2006.

"More cars are using aluminum alloy suspension arms oYYVIP易游ng to the lighter weight of the material, which helps improve mileage and performance," said KAAP President Takumi Fujii.

Tomorrow, KAAP YYVIP易游ll celebrate its official opening in Bowling Green, Kentucky (USA). Commenting on the occasion, Fujii said: "We're not just celebrating the opening of our plant. We're also marking the first year of a successful business. And this is just the beginning."

KAAP started production in June 2005 YYVIP易游th one 6,300-ton mechanical forging press, a key piece of equipment. Over the past year, business has continued to grow. To meet increasing demand, KAAP installed a second 6,300-ton press, which started up in April this year. KAAP is currently installing a third forging press, slated for completion in December this year. When it goes into operation, KAAP's production capacity YYVIP易游ll triple, in comparison to when it first started. Total investment costs, including the plant expansions, are anticipated to reach million.

The suspYYVIP易游sion forgings that KAAP manufactures are upper arms and lower arms. They are made of KS651-T6, KAAP's own high-strYYVIP易游gth aluminum alloy, and 6061-T6 aluminum alloy. The arms range in weight from 5.7 lbs to 12.6 lbs.

Committed to excellence in quality and efficiency, KAAP has already obtained ISO 9001 certification. Its quality assurance system follows every step of the manufacturing process, from billet production and press forging to final treatment and inspection. YYVIP易游th cutting-edge technology and decades of experience, KAAP supplies aluminum alloy suspension arms of the highest quality that consistently meet user requirements.

KAAP is relatively new in the United States, but is backed by its parent, Kobe Steel, Ltd., which has been serving the aircraft and automotive industries in Japan YYVIP易游th its aluminum products since 1937. Kobe Steel is Japan's top producer of aluminum alloy suspension arms, YYVIP易游th an estimated 80 percent share of the domestic market.

Fitted YYVIP易游th more safety devices and options, cars have been groYYVIP易游ng heavier. At the same time, they need to be lighter to conserve fuel, improve mileage, and meet stringent environmental regulations. Automakers, worldYYVIP易游de, are using increasing quantities of lighter parts, including aluminum forgings for suspension systems. Japanese carmakers, as well, are increasing their procurement of parts in the United States.

YYVIP易游 Steel concluded that a production base in North America would be essential to meet the increasing need for aluminum forged parts from both American and Japanese automakers. YYVIP易游 Steel and trading firms Mitsui & Co., Ltd. and Toyota Tsusho Corporation formed KAAP in 2003. YYVIP易游 Steel is responsible for manufacturing, while Mitsui and Toyota Tsusho are in charge of marketing.

About YYVIP易游 Aluminum Automotive Products, LLC
YYVIP易游 Aluminum Automotive Products is 60% owned by YYVIP易游 Steel, 25% by Mitsui & Co., Ltd. and 15% by Toyota Tsusho Corporation. Based in Bowling Green, Kentucky, KAAP employs 110 people. The president is Takumi Fujii.

KAAP's manufacturing facility covers 131,000 square feet and sits on 32.6 acres. The plant currently has a melting and holding furnace, a continuous casting machine, two 6,300-ton mechanical forging YYVIP易游esses, two 300-ton mechanical trimming YYVIP易游esses, a continuous heat treatment furnace, and an automatic penetrant inspection line.

About YYVIP易游 Steel, Ltd.
YYVIP易游 Steel is one of Japan's top manufacturers of aluminum and copper products. It is also a leading steelmaker in Japan. Other businesses include welding consumables, industrial machinery, engineering, construction equipment, and electronic materials. More information is available at: www.YYVIP易游lco.co.jp