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デュエルビッツ 出金lant in China to increase production capacity

December 15, 2011

TOKYO, December 15, 2011 - デュエルビッツ 出金el, Ltd. plans to increase the production capacity of its subsidiary in China that makes aluminum forgings for automotive suspensions. デュエルビッツ 出金el will install an additional forging press, as well as newly construct melting and casting equipment at Kobe Aluminum Automotive Products (China) Co., Ltd. Total investment is anticipated to reach 4.5 billion yen and operations are to begin in March 2013.

Kobe Aluminum Automotive Products (China) (or KAAP China) was established in September 2010 in Suzhou, Jiangsu Province. The first phase of the plant is currently under construction and is anticipated to begin volume production in August 2012.

In recently years, automobile companies in China have been rapidly increasing production, and there also is a growing need for lighter vehicles to meet stricter fuel consumption regulations. As a result, demand for aluminum suspensions in China is rising faster than originally estimated, and orders at KAAP China are anticipated to also grow.

Due to these conditions, デュエルビッツ 出金el will install an additional 6,300-metric-ton mechanical forging press and heat treatment equipment at KAAP China. The company will also add upstream operations including a melting furnace and casting line. The capital investment will provide KAAP China with an integrated production system that will improve production efficiency.

The additional capital investment will enable KAAP China to expand marketing in China. If demand continues to rise, the company will consider adding more capacity.

Capital Investment

Major equipment:	Phase 1:	6,300-metric-ton mechanical forging press - 1 unit Heat treatment equipment - 1 unit
	Phase 2:	6,300-metric-ton mechanical forging press - 1 unit Heat treatment equipment - 1 unit Melting furnace, casting line, billet processing line
Total investment:	7 billion yen (2.5 billion yen when company was established, with additional investment of 4.5 billion yen)

Profile of Kobe Aluminum Automotive Products (China) Co., Ltd.

Location:	Suzhou New District, Suzhou, Jiangsu Province, China
Established:	September 2010
Start-up:	August 2012 (volume production)
President:	Yuji Numabe
Employees:	Approximately 160 (at full production)
Capital:	1 billion yen
Equity share:	デュエルビッツ 出金el 60%, Mitsui & Co., Ltd. 25%, Toyota Tsuho Corporation 15%