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Nov. 09, 2007
Sumitomo Metal Industries, Ltd.
Sumitomo Corporation

Second Forging Press Line at Huizhou Sumikin Forging Comes Onstream

Huizhou Sumikin Forging Co., Ltd. ("HSFC") commenced commercial operations of a second forging press line on November 8. HSFC is a joint venture between Sumitomo Metal Industries, Ltd. ("Sumitomo Metals"), Sumitomo Corporation ("Sumitomo Corp.") and ThyssenKrupp China ("TKC") that manufactures and sells forged car & light truck crankshafts in China. The second line lifted HSFC's production capacity from 0.8 million to 1.8 million units/year.

1. Background to the second forging press line
Sumitomo Metals and Sumitomo Corp. established HSFC in July 2003 to meet rapidly increasing demand for forged crankshafts in China. ThyssenKrupp Forging Group subsequently joined the joint venture and HSFC began commercial operations on November 8, 2004.

In November 2005, HSFC decided to install the second line (5,000 ton press line) against a backdrop of expanding demand. On November 8, 2007, just three years after bringing the first forging press line onstream, HSFC began operations of the second line, about two months ahead of schedule.

2. Outline of the second forging press line
(1) Investment Amount: approx. 3 billion yen
(2) Production Facility: 5,000 ton press line
(3) Production Capacity: 1 million units/year
(4) Start of Operations: November 2007

The second line has not only expanded production capacity from 0.8 million to 1.8 million units/year, but also enabled manufacture of V-type forged crankshafts*, because the second line is equipped with a twister.

HSFC is making efforts to meet further increases in demand as well as to respond to customers' various needs in order to expand sales of forged crankshafts.

*V-type forged crankshaft
Refers to a forged crankshaft used in a V6 or V8 engine for automobiles and other applications. By twisting crankshafts after forging, an optimal shape is obtained, which reduces the machining costs.

(Reference)
1. Overview of Sumitomo Metals' crankshaft business
(1) Japan
Manufacture of forged crankshafts for passenger cars, trucks, construction machinery and other applications at the Osaka Steel Works (Osaka) in the Railway Automotive & Machinery Parts Company (capacity: approx. 4 million units/year).

(2) U.S.
Manufacture of crankshafts mainly for passenger cars and light trucks at International Crankshaft Inc. in the state of Kentucky. A third forging press line is under construction and scheduled to commence volume production in January 2009 to raise capacity from approx. 1.5 million to approx. 2.7 million units/year.

Backed by the manufacturing framework with three sites in Japan, the U.S. and HSFC in China, Sumitomo Metals aims to expand its forged crankshaft business under its Global 10 Plan to win more than 10% of the global market for crankshafts.

2. Outline of HSFC (as of November 2007)
Place of Business: Xiangshui River Industrial Park, Daya Bay, Huizhou, China
Date of Establishment: July 2003
Chairman:  Kouji Morita (Director and Senior Managing Executive Officer,
President of the Railway, Automotive & Machinery Parts
Company of Sumitomo Metals)
Capital: US$29.68 million (approx. 3.4 billion yen)
Investment Ratio: Sumitomo Metals 51%, Sumitomo Corp. 15%, TKC 34%
Production Facilities: A 6,000 ton press line and a 5,000 ton press line
Production Capacity: 1.8 million units/year
Number of Employees: 155 people

Inquiries

Corporate Communications Department,
Sumitomo Corporation

TEL:+81-3-5166-3100News Release Contact Form

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