Sumitomo Metals to Raise Forging Crankshaft Output Capacity in India

Sumitomo Metal Industries announced on Wednesday its affiliate company to produce forging crankshaft in India, SMI Amtek Crankshaft, will introduce No.2 forging press line and expand the output capacity by about 2.8 times to 2.2 million units per year. SMI Amtek Crankshaft will increase the supply along automobile market growth in India. Capital expenditure for the capacity expansion totals 1 billion rupees (approximately 1.9 billion yen). The new forging press line is scheduled to start operation in November 2012.

By this capacity expansion, Sumitomo Metals’ global output capacity of forging crankshaft will increase by 15% to 10.7 million units per year, as total of Japan, the U.S.A., China and India. Sumitomo Metals aims to strengthen local supply network along car market growth and targets the global market share at above 10%.

SMI Amtek Crankshaft was established jointly by Amtek Auto, Indian automotive component maker, and Sumitomo Metals as well as Sumitomo Corporation in 2009. The joint company started operation of a newly introduced 4,000-tonne press line in April 2010. Installment of No.2 press line was initially scheduled in 2013. They decided to put the capacity expansion ahead of the schedule since car makers are aggressively increasing production capacities. No.1 press line is expected to enter full capacity operation in the second half of 2012.

Capital fund of SMI Amtek Crankshaft is 540 million rupees, 50% invested by Amtek Auto, 40% by Sumitomo Metals and 10% by Sumitomo Corp. The joint company supplies forging crankshaft mainly for passenger cars and small trucks. The current employee number is 180. No.2 press line is a 5,000-tonne high speed forging press line with output capacity at 1.4 million units per year. Sumitomo Metals provides its state-of-the-art forging technologies for speed up and automation.