OREANDA-NEWS. Kobe Steel, Ltd. announces that the second-phase expansion of the aluminum forging plant at subsidiary Kobe Aluminum Automotive Products (China) Co., Ltd. (or KAAP China) has been completed and the new equipment has begun mass production.

Construction of the second-phase expansion began in December 2011. A joint venture of Kobe Steel, Mitsui & Co., Ltd. and Toyota Tsusho Corporation, KAAP China produces and sells aluminum forgings for automotive suspensions in Suzhou, Jiangsu Province, China.

KAAP China has doubled the production capacity of its aluminum forgings to 250,000 pieces per month. The addition of a melting furnace and casting line has enabled KAAP China to establish an integrated production system that ranges from melting to forging. Total capital investment for the second-phase expansion totaled 4.5 billion yen.

Kobe Steel produces aluminum forgings for automotive suspensions at its Daian Plant in Inabe, Mie Prefecture, Japan and at subsidiary Kobe Aluminum Automotive Products, LLC in Bowling Green, Kentucky, USA. The addition of KAAP China has enabled Kobe Steel to establish a production network in three locations: Japan, China and the United States. The expansion at KAAP China has now established integrated production systems in all three locations.

The world automobile market is anticipated to continue growing in the coming years. Kobe Aluminum Automotive Products, LLC in the United States is also expanding its production capacity. These investments will enable Kobe Steel to meet the rising global demand for aluminum suspensions.