Sumitomo Metals and Sumitomo Corporation Complete Acquisition of Norton Manufacturing Company, a Crankshaft Machining Company in the U.S.

As a result, Sumitomo Metals has established an integrated manufacturing system, from base metal manufacturing to forging and machining.

1. Objective of Acquisition

Sumitomo Metals has a leading share in the global automotive crankshaft market (approximately 8% based on our estimate) and supplies the U.S. market through International Crankshaft Inc. (Kentucky), a joint business venture between Sumitomo Metals and Sumitomo Corp, in addition to exports from the company's Osaka Steel Works.

Automotive or engine manufacturers conventionally carry out machining processes of crankshafts by themselves. In recent years, however, they begin to outsource the processes in order to reduce investment and costs, inNorth America.

This is the first time for Sumitomo Metals to enter the machining business (lathe turning, polishing, and heat treatment), and this has enabled us to establish an integrated manufacturing system.

2. Profile of the new company

    (1)  Name:                 SMI Crankshaft LLC
    (2)  Location:             Fostoria, Ohio, U.S.
    (3)  President:            Makoto Tsuruhara
                               (seconded from Sumitomo Metals)
    (4)  Paid in Capital:      US$ 25.5 million
    (5)  Shareholders:         Sumitomo Metals (60%) and Sumitomo Corp. (40%)
    (6)  Number of employees:  Approximately 250 

(Reference)

1. Profile of Norton Manufacturing Company, Inc. (as of September 2008)

    (1)  Location:             Ohio
    (2)  President:            Richard Norton Jr.
    (3)  Shareholders:         Fully-owned by Richard Norton Jr.,
    (4)  Sales:                Approximately US$ 43 million (2007 results)
    (5)  Number of employees:  Approximately 250

2. Profile of International Crankshafts Inc. (as of September 2008)

    (1)  Location:             Kentucky
    (2)  President:            Daniel J. Condon
    (3)  Shareholders:         Sumitomo Metals (80%) and Sumitomo Corp. (20%)
    (4)  Production volume:    1.6 million crankshafts (2007 results)
    (5)  Number of employers:  Approximately 150

SOURCE Sumitomo Corporation; Sumitomo Metal Industries, Ltd.

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Copyright © 2009, NewsBlaze, Daily News

Tags: ,MAC,AUT,TNM,NY-Sumitomo-Metals

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