Sumitomo Metals Targets 50% Higher US Crankshaft Output

Sumitomo Metal Industries’ US subsidiary, International Crankshaft Inc. (ICI) increases the output and sales volume by 50% to annual 2.7 million units by 2013-2014 compared with 2010 level through matching capacity expansion. The firm tries to optimize the production system to meet sophisticated products for more compact engine and hybrid vehicle.

North American automobile demand recovers from the bottom after Lehman shock. ICI expects US automobile sales increases by 12% to around 13 million units and the automobile output increases by around 14% to around 9 million units in 2011 from 2010. The firm estimates forging crankshaft demand is around 6 million units per year in USA when the demand shifts to forging products from casting products. The firm tries to expand the production and sales volume through mid term plan to meet the recovering demand and US automakers’ shift to forging products.

The firm has 2 lines with 6,000 tonnes press each and a line with 7,000 tonnes press at the headquarters plant in Kentucky. The firm produced and sold around 1.8 million units of products in 2010. The firm expects the tries to increase the volume to 2.7 million units in 2013-2014 while the sales decreases by 100,000 units to 1.7 million units in 2011 from 2010 due to customer’s revision of the parts.

The firm tries to improve the relationship with the customers and to follow offshore makers’ transplant building projects while the firm tries to improve the production system including quality and lead time management and cost structure. The firm increases the shifts for all 3 lines and increases the employees from current 150 to 190.

The firm expects the demand shifts to more compact sized crankshaft under the trend for hybrid vehicle and compact car. The firm studies potential conversion for 2 of the 3 lines to follow the changing demand.