Daido Steel Expands Powder Alloy Sales

Daido Steel expects the firm clears the powder alloy business target in fiscal 2006 ending March 2007 2 years ahead of the original fiscal 2008 when the powder alloy sales increases by more than annual 20%. The firm considers building second powder plant while the firm accelerates the development of new products and market including high performance soft magnetism powder, for which the firm established mass production technology. The firm already expanded the powder output capacity to around 1,250 tonnes per month through expansion in August 2005 and August 2006. The sales are running at annual 6.6 billion yen for the second half of fiscal 2006 and will reach 6 billion yen for fiscal 2006 compared with 4.4 billion yen in fiscal 2005 and 3.3 billion yen in fiscal 2004. The powder sales to automobile represent 64% of the sales. The sales expand under growing automakers’ activity at home and abroad. The powder export will expand to 30% of the sales from 12% in second half of fiscal 2005. The firm expands the business by making use of the technology advantage. The firm established mass production technology for soft magnetism coating powder. The firm tries to develop the market mainly for automobile applications. The firm also tries to expand the sales of the strategic items while studying the future expansion.