Kobe Steel to build aluminum extrusion and fabrication plant in Kentucky; bumper and car frame materials
Japan-based Kobe Steel, Ltd. will manufacture and sell aluminum extrusions for the automotive sector in the United States. The new business will operate through a company called Kobelco Aluminum Products & Extrusions Inc. (KPEX) in Bowling Green, Kentucky.
KPEX will make bumper materials for cars and car frame materials. The new company will have an integrated production facility, with operations ranging from melting to fabrication. Plans call for construction of the plant to begin this summer. Fabrication will start in the latter half of 2017, and the melting to extrusion processes will begin in the latter half of 2018. Total investment is expected to reach $46.7 million.
North America is the world’s second-largest automotive market and car production is forecast to continue to grow in the future. In addition, higher Corporate Average Fuel Economy (CAFE) standards for 2025 are accelerating the need to lighten car bodies. As aluminum 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.
Kobe Steel has been supplying aluminum bumper materials to Japanese automakers since the 1990s. The company has more than 20 years of experience in the Japanese market and has established a strong track record.
The establishment of KPEX will enable Kobe Steel to manufacture and supply the same high-quality aluminum extrusions and fabricated products available in Japan in the North American market. KPEX will be Kobe Steel’s second manufacturing operation in Bowling Green after Kobe Aluminum Automotive Products, LLC (KAAP), which began production in 2005. KAAP makes aluminum forgings for automotive suspension systems and aluminum cast rods for compressors.