Aichi Steel to Expand Offshore Forging Capacity

Aichi Steel expands offshore forging capacity. The firm builds new forging plant in Thailand for around 2 billion yen completing the plant building construction in the year and starting the operation in summer 2012. The firm also expands the capacity at plant in Kentucky, USA to expand the size range to medium and small sizes from current large size.

The firm makes forging products at Philippine subsidiary to meet growing demand in Asia. However, the plant, operates at full capacity, has no room to increase the production for rapid growing demand for automobile.

The firm decided the new Thai plant to meet growing demand in Asia when automobile production should increase in the market. The firm builds the first phase plant with press machine in southeastern part of Bangkok by end of 2011 to start operation in summer 2012. The firm eyes the second phase expansion by end of 2015 and additional expansion as the third phase.

The firm expands the capacity at Kentucky plant, which makes large forging products. The firm tries to supply medium and small sized forging products with new line when the demand decreases for large sized products.

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