MetalArt to Double Forged Steel Output Capacity for Car Transmission Parts

MetalArt Corporation, Japanese major forged steel maker, plans to double the output capacity of automotive transmission components. The corporation installs an additional productive line to manufacture forged steel parts applied to continuously variable transmission (CVT) of Daihatsu Motor’s vehicles at Minakuchi plant in Koka City, Shiga Prefecture, Japan. Minakuchi plant is one of productive sites of MetalArt’s subsidiary, MetalTex Corporation headed in Kusatsu City, Shiga. The capex for the capacity expansion is approximately 1 billion yen. The added line will start operation in 3Q 2011. MetalArt decided the capacity expansion with an expectation that car makers’ eco friendly car output would recover in and after 3Q 2011.

The new productive line in MetalTex Minakuchi plant is dedicated to process forged steels into CVT parts. The output capacity will be raised for approximately 19,000 cars per month from the present capacity for approximately 9,000 cars per month. The facility installation has almost finished. The plant will also increase the employee number by 10-20.

The corporation increases the production of four-stepped sheaves, forged steel parts for CVT. Four-stepped sheave is one of key components for eco friendly cars to improve fuel efficiency compared with normal transmissions. MetalTex Minakuchi plant started production of for-stepped sheaves in March 2008. The current output is for approximately 9,000 cars per month.

MetalArt posted full-year consolidated net sales at 26.1 billion yen in fiscal 2010 ended in March 2011, increasing by 20.4% from the previous financial year. About 60% of the net sales was related to automobiles, 40% of which was for Daihatsu Motor.