The Timken Co. will invest about $60 million in its steel rolling mill operations to increase the company's capability to produce differentiated steel products. The investment will enable Timken to competitively produce steel bars down to 1-inch diameter for use in power transmission and friction management applications for a variety of customers, including the rapidly growing automotive transplants.
"We are making investments across our company to strengthen the differentiation of our technology and product portfolio," said James Griffith, Timken president and CEO. "The expansion of our small-bar steel capabilities is part of our strategy of managing our company for value and taking advantage of strong market opportunities to improve our ability to create shareholder value throughout the economic cycle."
Assisting with the technical aspects of the project will be Daido Steel Co. Ltd., a leading Japanese producer for manufacturing special quality small-bar steel.
Daido and Timken also intend to explore other possible areas of collaboration in connection with the manufacture and supply of steel and steel-related products and services.
The project will enable Timken to meet demanding requirements for special bar-quality steel from a wide range of customers in the bearing, industrial, energy, distribution and automotive segments, as well as Timken's automotive and industrial groups. Currently, some of this material is not readily available in the United States.
A 76,000-square-foot addition will be built at the Harrison Steel Plant in Canton, Ohio. The project will include expanded rolling, finishing and inspection capabilities. Construction is expected to begin in mid-June, with completion expected in mid-2008.