International Crankshaft Inc. ("ICI"), a joint-venture company established by Sumitomo Metal Industries, Ltd. ("Sumitomo Metals") and Sumitomo Corporation ("Sumitomo Corp.") for the manufacture and sale of forged crankshafts in the United States, has decided to install the third forging press line to meet robust local demand.

Overview

1. Background to the third line's installation
ICI is currently running its two forging press lines at full capacity in response to burgeoning North American demand for forged crankshafts, producing approximately 1.4 million crankshafts per year.

As the forged crankshaft market continues to expand, local customers have requested ICI to increase production. Greater production capacity is needed to meet this growing demand in the North American market, and so the decision has been made to install the third forging press line.

2. Outline of No. 3 forging press line
(1) Investment Amount: Approx. 4.5 billion yen
(2) Production Facilities: one 6,000-ton press line with associated equipment
(3) Production Capacity: Approx. 1.25 million crankshafts per year
(4) Start of Operations: January 2009

(Reference)
1.Overview of Sumitomo Metals' forged crankshaft business
In Japan, Sumitomo Metals produces forged crankshafts for passenger cars, trucks, construction machines and other machinery at the Osaka Steel Works in Osaka City, which belongs to the Railway, Automotive & Machinery Parts Company (annual capacity of approx. 4 million crankshafts).

In China, Sumitomo Metals' joint-venture company Huizhou Sumikin Forging Co., Ltd. (gHSFC") produces crankshafts, chiefly for passenger cars. HSFC will bring the second forging press line on stream in January 2008 to lift its production level to approximately 1.8 million crankshafts per year.

In the United States, International Crankshaft Inc. (Kentucky) produces crankshafts primarily for passenger cars. ICI will boost its production level with the installation of the third forging press line that will increase annual capacity from approximately 1.4 million at present to approximately 2.65 million crankshafts per year.

This supply system composed of three manufacturing bases in Japan, China and the U.S. will allow Sumitomo Metals to respond to both the expansion of the forged crankshaft market and the global strategies of auto makers.

2. Outline of ICI (as of July 2006)
Place of Business: 101 Carley Court, Georgetown, Kentucky 40324, U.S.A.
Date of Foundation: February 1990 (operations started in April 1992)
President: Daniel J. Condon
Capital: 22 thousand US dollars
Investment Ratio: Sumitomo Metals 80%, Sumitomo Corp. 20%
Production Facilities: one 6,000-ton press line with associated equipment


Production Capacity: Approx. 1.4 million crankshafts per year
Number of Employees: Approx. 140