TOKYO- Kobe Steel Ltd's US subsidiary, Kobe Aluminum Automotive Products LLC (KAAP), will spend 14 mln usd on boosting its aluminum forging capacity to meet growing demand for lightweight automotive suspension systems, Kobe Steel said.
KAAP will install its fourth mechanical forging press line and associated equipment, with a view to putting it into operation by April 2008, Kobe Steel said.
The new production line will increase KAAP's capacity to 280,000 forgings a month from 210,000 at present.
KAAP makes 190,000 forgings a month now and expects to be using all its present capacity by early next year.
'KAAP anticipates that demand will continue to increase in the future as aluminum is being considered in new car applications, primarily by Japanese automotive transplants,' Kobe Steel said in a statement.
Kobe Steel owns 60 pct of KAAP, Mitsui & Co Ltd owns 25 pct and Toyota Motor Corp-affiliated trading firm Toyota Tsusho Corp owns 15 pct.
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