Kobe Steel to Produce Aluminum Forgings in China
Aluminum forgings for automotive suspensions are increasingly used in luxury cars to reduce weight and meet environmental regulations. Kobe Steel has a high share of the Japanese market for aluminum forgings for suspensions and manufactures the high-end product in the company's Daian Plant in Japan. In 2005, Kobe Steel's U.S. subsidiary, Kobe Aluminum Automotive Products LLC, began operations in Bowling Green, Ky., to supply automakers in North America. Kobe Steel concluded that it was necessary to establish a production site in China to meet orders from Chinese automakers.