Kobe Steel and partners to produce automotive parts in China

Kobe Steel Ltd and two Japanese trading companies will form a joint-venture manufacturing company in China to produce aluminium forgings for automotive suspensions. The estimated $26.8 million investment project is due to start production in August 2012 at Suzhou in Jiangsu province. The same partnership of Kobe Steel (60%), Mitsui & Co. Ltd (25%), and Toyota Tsusho Corp. (15%) has been producing aluminium automotive forgings at Kobe Aluminium Automotive Products LLC in Bowling Green, KY, since 2005. The new venture is provisionall, called Kobe Aluminium Automotive Products (China) Co. Ltd, and will be capitalised at an estimated $10.7 million. Kobe Steel stated the operation will feature 300 metric-tonnes of mechanical forging press and heattreating equipment. Kobe Steel expects to consider increasing production capacity of the new venture as market demand indicates. Kobe Steel will oversee production, quality control, and business operations. Mitsui and Toyota Tsusho will be responsible for sales and marketing to automotive manufacturers and parts makers in China.Hombre