Kobe Steel Ltd., Tokyo, announces that it will build a $46.7 million integrated production facility in Bowling Green, Kentucky, to manufacture aluminum extrusions for the automotive sector in the United States. The new business will operate through Kobelco Aluminum Products & Extrusions Inc. (KPEX), which will make bumper materials for cars and car frame materials.
The new company will have an integrated production facility, with operations ranging from melting to fabrication. Plans call for construction of the plant to begin this summer. Fabrication will start in the latter half of 2017, and the melting to extrusion processes will begin in the latter half of 2018.
Kobe Steel has been supplying aluminum bumper materials to Japanese automakers since the 1990s. The company has over 20 years of experience in the Japanese market, and has established a strong track record. Kobe Steel’s original weight-saving proposals, which cover both product development and cross-section design technology, have received high acclaim from customers.
The establishment of KPEX will enable Kobe Steel to manufacture and supply the same high-quality aluminum extrusions and fabricated products available in Japan in the North American market. Through innovative weight-saving proposals, Kobe Steel aims to gain the trust of automakers in North America. KPEX will also contribute to strengthening Kobe Steel’s overall supply network, which covers Japan and the United States.
KPEX will be Kobe Steel’s second manufacturing operation in Bowling Green after Kobe Aluminum Automotive Products LLC (KAAP), which began production in 2005. KAAP makes aluminum forgings for automotive suspension systems and aluminum cast rods for compressors.
