Kobe Steel, Ltd. and Alcoa Inc. announced an agreement to expand their aluminum alliance on the joint development of aluminum products for the automotive market. Due to changes in the business environment, the two companies also announced that they intend to discontinue both of their 50/50 joint ventures that produce aluminum can stock used in making beverage cans. Kobe and Alcoa intend to expand their existing cooperation in aluminum sheet for global automotive customers by adding R&D efforts on aluminum extrusions, castings and forgings.
In July 1992, Kobe and Alcoa formed two 50/50 joint ventures to serve the transportation market. Kobe Alcoa Transportation Products, Ltd. in Japan undertakes R&D, manufacturing and marketing of aluminum sheet products aimed at the Japanese automotive industry.
The U.S. counterpart is Alcoa Kobe Transportation Products, Inc. AKTP conducts research and development of aluminum sheet for the automotive industry. AKTP's R&D effort in aluminum sheet technologies has been effective in supporting carmakers in the United States.
Meanwhile, the two companies announced that their can stock joint ventures is being restructured
According to the two companies, despite diligent efforts, the can stock joint ventures did not meet the expectations of either party. Market conditions are extremely competitive, and both parties believe they can be more effective in the market by operating independently.
As part of the termination of the can stock ventures, Kobe will acquire control of the Kaal Japan joint venture from Alcoa. In exchange, Alcoa will receive Kobe's interest in the Kaal Australia joint venture. Alcoa will grant Kobe a license to use Alcoa's technology embedded in the Kaal Japan cold rolling mill. Alcoa has also agreed to act as a distributor for Kobe's can sheet products in Asia. Both companies also agreed to continue the supply of aluminum ingot to the Japan can stock operation for a certain period of time.Get curated news on YOUR industry.
Enter your email to receive our newsletters.
Latest from Recycling Today
- Morssinkhof-Rymoplast Group breaks ground on Belgian plastic recycling facility
- 30 Under 30 awards return, nominations open
- Sunnking doubles processing capacity with Untha shredder addition
- Ewaste+ acquires Take 2 Recycling
- Constellium partners with Tarmac Aerosave to recycle aluminum from end-of-life aircraft
- Turmec will supply equipment to New Zealand MRF
- ATI starts up titanium sheet production
- Eriez adds ASEAN region manager
