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Japanese Firms to Establish JV for Aluminum Forged Parts in China
05/12/2010 - Kobe Steel, Mitsui, and Toyota Tsusho have signed an agreement to form a joint-venture company, provisionally called Kobe Aluminum Automotive Products (China) Co., Ltd., to produce and market aluminum forgings for automotive suspensions. Following construction of a plant, production is anticipated to begin in August 2012.
Kobe Steel, Ltd., Mitsui & Co., Ltd., and Toyota Tsusho Corp. have signed an agreement to form a joint-venture (JV) company in China to produce and market aluminum forgings for automotive suspensions. Provisionally called Kobe Aluminum Automotive Products (China) Co., Ltd., the new company will be established in Suzhou, Jiangsu Province in June.
Following construction of the plant, production is anticipated to begin in August 2012.
The companies anticipate that demand for aluminum suspensions in China will increase as auto production steadily rises. They say that it was essential to establish a production site in China to meet the growing orders from automakers there.
Kobe Steel notes that it has a high share of the Japanese market for aluminum forgings for suspensions and manufactures the product in its Daian Plant in Inabe, Mie Prefecture, Japan.
In 2003, Kobe Steel, Mitsui, and Toyota Tsusho established Kobe Aluminum Automotive Products, LLC (KAAP) in Bowling Green, Kentucky, as a production base for the North American auto market. KAAP began operations in 2005.
Kobe Steel will be in charge of production, quality control, and business operations for the new company in China, as it is for KAAP in the U.S.; Mitsui and Toyota Tsusho will be responsible for expanding sales to automotive manufacturers and parts makers in China.
Kobe Steel notes that it has a high share of the Japanese market for aluminum forgings for suspensions and manufactures the product in its Daian Plant in Inabe, Mie Prefecture, Japan.
In 2003, Kobe Steel, Mitsui, and Toyota Tsusho established Kobe Aluminum Automotive Products, LLC (KAAP) in Bowling Green, Kentucky, as a production base for the North American auto market. KAAP began operations in 2005.
Kobe Steel will be in charge of production, quality control, and business operations for the new company in China, as it is for KAAP in the U.S.; Mitsui and Toyota Tsusho will be responsible for expanding sales to automotive manufacturers and parts makers in China.
The joint venture will consider increasing production capacity in the future as needed to meet demand from automakers.
