-(1)-Reinhausen-(1).jpg?lang=en-US&ext=.jpg)
Four Japanese Firms Establish Aircraft Parts JV
03/02/2011 - Hitachi Metals, Ltd., Kobe Steel, Ltd., IHI Corporation, and Kawasaki Heavy Industries, Ltd. (or KHI) have jointly established a joint venture to manufacture large forgings for use in aircraft and power plants.
Hitachi Metals, Ltd., Kobe Steel, Ltd., IHI Corporation, and Kawasaki Heavy Industries, Ltd. (or KHI) have jointly established a joint venture to manufacture large forgings for use in aircraft and power plants.
The new joint venture — Japan Aeroforge, Ltd. — will install Japan's first 50,000-tonne forging press. The advanced forging press will manufacture large forgings mainly for the growing international aircraft industry. This will enable stable domestic production for large forgings made of titanium, nickel and high alloys, demand for which is expected to increase. In addition, integrated domestic production will promote high-efficiency recycling of large volumes of waste chips and other scrap that result from the manufacturing process. It will also contribute to reducing the use of rare metals, as well as improve cost competitiveness.
In the future, Japan Aeroforge hopes to provide overseas aircraft manufacturers with forgings to help meet demand throughout the world.
The four companies that have invested in Japan Aeroforge are making full efforts in preparing for the start of production at Japan Aeroforge. The strengths of each of the four companies will provide the joint venture with strong support and will contribute to improving the competitiveness of Japan's aircraft industry.
Japan Aeroforge will press titanium, nickel, high alloys and other metals supplied by Hitachi Metals, Kobe Steel and other material makers into forged parts for aircraft engines and fuselages, as well as forged parts for power plants. After processing, Japan Aeroforge will return the processed parts to Hitachi Metals, Kobe Steel and other materials makers for heat treatment, machining, and inspection. Hitachi Metals and Kobe Steel will then supply the forged parts to IHI, KHI, other domestic heavy industry manufacturers and heavy electrical machinery manufacturers.
Hitachi Metals and Kobe Steel have incorporated Japan Aeroforge in their business strategies and intend to actively promote the business. IHI and KHI will also provide support for the smooth start-up of Japan Aeroforge.
While Hitachi Metals has expertise in forging and molding technologies for nickel and high alloys, Kobe Steel is Japan's only integrated manufacturer of titanium, with experience in the entire process from melting to final products. With a stable supply of large forgings, IHI and KHI will be able to utilize their high machining and fabrication technologies for aircraft parts developed over many years to strengthen the competitiveness of Japan's aircraft industry.
Construction of Japan Aeroforge's plant will begin in March in Kurashiki, Okayama Prefecture in western Japan. Okayama Prefecture has given strong support to the venture, and Japan Aeroforge plans to develop its business so that it can contribute to the local economy. Production is anticipated to begin in March 2012.
Marubeni-Itochu Steel Inc. and Sojitz Aerospace Corporation are slated to join the venture later this month. Through a third-party allocation of shares, paid-in capital will reach 3.7 billion yen. Total investment in the project is anticipated to be 20 billion yen.
After the capital increase, Hitachi Metals and Kobe Steel will each hold a 40.53% equity share in the new venture, with remaining shares held by IHI (5.41%), KHI (5.41%), Marubeni-Itochu (5.41%) and Sojitz Aerospace (2.70%).
