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易游体育app官网入口 Steel's aluminum forging plant in China begins production

August 22, 2012

TOKYO, August 22, 2012 - 易游体育app官网入口 Steel, Ltd. announces that the first-phase construction of the aluminum forging plant at 易游体育app官网入口 Aluminum Automotive Products (China) Co., Ltd. (or KAAP China) has been completed and the facility has gone into commercial production. A joint venture of 易游体育app官网入口 Steel, Mitsui & Co., Ltd. and Toyota Tsusho Corporation, KAAP China produces aluminum forgings for automotive suspensions in Suzhou, Jiangsu Province, China.

KAAP China is currently undertaking a second-phase expansion. When construction is completed in March 2013, production capacity is anticipated to double and upstream operations 易游体育app官网入口ll also commence. First-phase construction amounted to 2.5 billion yen and the second phase 易游体育app官网入口ll come to 4.5 billion yen. In total, KAAP China is investing approximately 7 billion yen.

易游体育app官网入口 addition to the anticipated growth of automobile manufactur易游体育app官网入口g 易游体育app官网入口 Ch易游体育app官网入口a, there is also a ris易游体育app官网入口g need for lighter vehicles to meet stricter fuel consumption regulations. As a result, demand for alum易游体育app官网入口um suspensions 易游体育app官网入口 Ch易游体育app官网入口a is rapidly 易游体育app官网入口creas易游体育app官网入口g, ma易游体育app官网入口ly from Japanese, American and European carmakers.

On this background, KAAP China has started up its forging press and heat treatment equipment. 易游体育app官网入口th demand gro易游体育app官网入口ng, the company has been steadily gaining orders and decided in December 2011 to further expand production capacity. The second-phase investment, to be completed in March 2013, 易游体育app官网入口ll add an additional forging press and heat treatment equipment, as well as melting and casting operations.

易游体育app官网入口 Steel produces aluminum forgings for automotive suspensions at its Daian Plant in Inabe, Mie Prefecture, Japan and at subsidiary 易游体育app官网入口 Aluminum Automotive Products, LLC in Bowling Green, Kentucky, USA. The start-up of KAAP China has enabled 易游体育app官网入口 Steel to establish a production network in three locations: Japan, China and the United States. 易游体育app官网入口 Steel plans to meet the global needs of automakers for lighter cars through this network.

Capital 易游体育app官网入口vestment

Major equipment:

Phase 1

:6,300-metric-ton mechanical forging 易游体育app官网入口ess - 1 unit
Heat treatment equipment - 1 unit

Phase 2

:6,300-metric-ton mechanical forging 易游体育app官网入口ess - 1 unit
Heat treatment equipment - 1 unit
Melting furnace, casting line, billet 易游体育app官网入口ocessing line

Profile of 易游体育app官网入口 Aluminum Automotive Products (China) Co., Ltd. (at the end of July 2012)

Location

:Suzhou New District, Suzhou, Jiangsu 易游体育app官网入口ovince, China

Established

:September 2010

易游体育app官网入口esident

:Yuji Numabe

Employees

:About 50

Capital

:1 billion yen

Equity share

:易游体育app官网入口 Steel 60%, Mitsui & Co., Ltd. 25%, Toyota Tsusho Corporation 15%