Singapore--Japan's Kobe Steel said Monday that its US subsidiary, Kobe Aluminum Automotive Products (KAAP), will further increase production of aluminium forgings to meet the growing US market for lightweight automotive suspension systems. The Kentucky-based company will invest $14 million to add a fourth mechanical forging press and associated equipment. Production is scheduled to begin April 2008.
Since KAAP's startup in June 2005, production of aluminium forgings has continued to expand, the company said. Strong demand required KAAP to install a second forging press in April 2006 and a third press in December the same year. KAAP currently manufactures 190,000 pieces/month. On confirmed orders alone, KAAP's No. 3 forging press is expected to reach full operation in the first half of 2008. KAAP anticipates that demand will continue to increase in the future as aluminium is being considered in new car applications, primarily by Japanese automotive transplants.
When the No. 4 forging press goes into operation, KAAP's production capacity will rise to 280,000 pieces/month, a 33% increase, the company added.
Kobe Steel said fitted with more safety devices and options, cars have been growing heavier, while having to clear stringent environmental regulations. American and Japanese automakers are turning to forged aluminium suspensions, which are about 40% lighter than suspensions made of steel castings. They also contribute to improved drivability and ride quality.
Kobe Aluminum Automotive Products is 60% owned by Kobe Steel, 25% by Mitsui & Co. and 15% by Toyota Tsusho Corp. Sales in 2006 were about $30 million and are forecast to rise to $70 million in 2008.
豫公网安备41010502003434号