core sector communique

SMI Amtek decided to Install Second Forging Press Line

- Expansion of Forged Crankshaft Business in India -

SMI Amtek Crankshaft Pvt. Ltd, a joint-venture company owned by Sumitomo Metal Industries, Ltd. (Sumitomo Metals), Sumitomo Corporation, and Amtek Auto Limited (Amtek), has decided to install a second forging press line in order to respond to rapidly growing demand for crankshafts in India. This expansion will increase annual production capacity from 800,000 to 2.2 million units. Investment will amount to 1 billion rupees (approximately 1.9 billion yen at a rate of 1 rupee/1.9 yen), and the line is scheduled to start operation in November 2012.

The Sumitomo Metals aims to raise the global share to over 10% by the forged crankshaft business and will satisfy customers through our four-bases supply and sales structure, which comprises Japan, the United States, China and India.

1. Background

In India, where the automobile industry is growing rapidly, Sumitomo Metals, Sumitomo Corporation, and Amtek started up a 4,000-ton press line in April 2010. The current No. 1 forging line will reach full production capacity in the second half of 2012. As demands from customers have substantially exceeded the production capacity of the No. 1 forging line, the joint-venture company has decided to install a second forging line to meet rising demand.

The No. 2 forging line that is scheduled to be installed will introduce Sumitomo Metals' latest crankshaft forging technologies such as high speed and automation. As a result of this investment, the worldwide forged crankshaft supply capacity of the Sumitomo Metals will increase from 9.3 million to 10.7 million units. Sumitomo Metals aims to achieve over 10% global share of the forged crankshaft sector by performing its unique, competitive monozukuri (manufacturing based on highly skilled craftsmanship) from the perspectives of quality and productivity.

2. Investment details

(1) Equipment:                    5,000-ton high speed forging press line 
(2) Investment amount: :     1 billion rupees (approximately 1.9 billion yen)
(3) Production capacity:        Approximately 1.4 million units per year
(4) Start of operation:          November 2012 (plan)

1. Sumitomo Metals’ forged crankshaft production structure

(1) Japan - Railway, Automotive & Machinery Parts Company (Osaka Prefecture)
           Application:                  Mainly for passenger cars, trucks, and construction

                                             machinery
           Production capacity:      Approximately 4 million units per year
(2) U.S.A. - International Crankshaft Inc. (Kentucky State)
           Application:                  Mainly for passenger cars and small trucks
           Production capacity:      Approximately 2.7 million units per year
(3) China – Huizhou Sumikin Forging Co., Ltd. (Guangdong Province)
           Application:                  Mainly for passenger cars and small trucks
           Production capacity:      Approximately 1.8 million units per year
(4) India - SMI Amtek Crankshaft Pvt. Ltd
           Application:                  Mainly for passenger cars and small trucks
           Production capacity:      Approximately 0.8 million units per year (plan to increase to

                                             2.2 million units from 2012)