Daido Steel Cooperates with Timken for Special Steel Production

Japanese major special steel maker, Daido Steel announced on Wednesday the firm agreed on business alliance with Timken, the bearing and special steel maker in USA, for the enhancement of production capacity because Daido Steel aimed to meet increasing demand for high-grade special steel from Japanese bearing makers and automobile makers in USA. The firms will advance the alliance for other beneficial themes.Timken produces bearings and special steel products whose sales were 620 billion yen in fiscal 2005. Special steel accounts for 30% of the total sales. Its crude steel capability is 1.4 million tonnes per year.One of the alliance contents is that Daido Steel supports Timken by engineering for output capacity expansion at Timken’s Harrison plant to improve quality and productivity. Daido Steel introduces its output methods at Chita plant into Harrison plant to expand capacity for thinner rolled products as well as introduction of quality certification technology. The expansion will complete in summer 2008 with US$ 60 million of investment. Daido Steel supports technology service to Japanese users in USA along the alliance. Daido Steel and Timken also advance some themes on production and service for special steel products.Daido Steel aims to meet increasing demand for high-grade special steels from Japanese automobile makers and bearing makers at overseas by technology transference to US special steel maker. Japanese automakers and bearing makers are actively increasing their offshore production and demand high-grade special steel for engine and transmission by local purchase. Timken aimed to expand the rolling mill and checking line with supports by Japanese special steel maker in order to meet shorter delivery lead time for Japanese users.Daido Steel will be able to purchase materials for its US forging subsidiary, Ohio Star Forge, and to establish integrated production system in USA thanks to the alliance. Daido Steel built up technology alliance with Gerdau Acos Especiais Piratini, Gerdau group’s special steel maker in Brazil, in 2006. Daido Steel reinforces global strategy through the alliances in North and South America.