Kobelco Aluminum lays foundation of $46 million plant

<p>As a part of the expansion of their aluminium business, Japan-based Kobe Steel Ltd. has announced that they have broken ground on a $46 million extrusion plant in Bowling Green, Kentucky. The plant will manufacture aluminium extrusions and cater to the automotive sector in the US. The new extrusion business will be put under a company called Kobelco Aluminum Products &amp; Extrusions Inc. (KPEX).<br /><br />According to the update from KPEX , the extrusion plant will facilitate a melt shop and casting line, an extrusion press and two vehicle bumper fabrication lines. It will have an annual output of up to 6,000. KPEX further says that the plant will make materials for car bumpers and frames. They expect the fabrication operations to start in the second half of 2017 and melting and extrusion processes are expected to start up in the second half of 2018.<br /><br /><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/KPEXAluminumWeb.jpg" alt="News" width="736" height="414" /><br /><br />Lightweight car bodies are in high demand in North America due to higher Corporate Average Fuel Economy (CAFE) standards for 2025.&nbsp; Kobelco is expected to cater to this demand through this expansion. &ldquo;As aluminium extrusions are an effective way to reduce the weight of cars, demand for bumper beams, car frame materials and other extruded products is expected to greatly expand,&rdquo; says a KPEX executive.<br /><br />Kobe Steel has been a supplier of aluminium bumper materials for the Japanese automakers since the 1990s. The company says its light weighting strategies will include development of products like high-strength 7000 series aluminium alloys, and cross-section design technology for clients.<br /><br />&ldquo;The establishment of KPEX will enable Kobe Steel to manufacture and supply the same high-quality aluminium extrusions and fabricated products available in Japan in the North American market,&rdquo; says the firm.<br /><br />After the commissioning of Kobe Aluminum Automotive Products LLC (KAAP) in 2005, KPEX will be Kobe Steel&rsquo;s second manufacturing operation in Bowling Green.&nbsp; KAAP manufactures aluminium forgings for automotive suspension systems and aluminium cast rods for compressors.<br /><br />These cast shops and extruding operations use aluminium scrap as a feedstock. According to The Aluminium Association, &ldquo;Nearly 40 per cent of the North American aluminium supply is now created through secondary production, up around 10 per cent since the early 1990s.&rdquo; Kobelco hopes to contribute to the casting and extrusion sector through this recent expansion.</p>