An Overview of Kobelco

Kobelco Metal Powder of America, Inc. was established as a subsidiary of Kobe Steel, Ltd. (KSL) in November, 1987. An expansion project in 1994 increased our production capacity by adding another annealing furnace and a pre-mix or blending area as well as adding a rail spur line into the property. In addition, a $3 million dollar equipment expansion and renovation project was announced in early 2000 and was completed by the end of the year. This expansion allowed Kobelco to increase production capacity by approximately 20%. Plans are currently underway to increase premix blending capacity in 2001.

Specializing in the production of metal powder, Kobelco combines two technologies in one production facility. The first is KSL's manufacturing technology for steel materials, particularly materials used in the automotive industry. The second is manufacturing technology for powder metallurgy. It is based on more than 30 years of experience in producing water-atomized steel powders.

Kobe Steel, Ltd is one of the world's top twenty iron and steel producers and one of Japans' most diversified corporations. Kobe Steel offers a wide range of ferrous and nonferrous metals, industrial and construction machinery, and advanced plant engineering expertise throughout the world.

These diversified operations are unified through KSL's integrated management system, which encourages the free exchange of specialized knowledge among KSL's internal divisions and numerous research centers. It is the coordinated communication that provides KSL with the comprehensive approach it needs to solve complex engineering and production problems.

About 70% of the production of steel powders for powder metallurgy parts in the U.S. is used in the automotive industry for the manufacture of engine, transmission, body and chassis parts. The remainder goes into parts for appliances, and agricultural and office equipment. Steel powders are judged on their purity, compressibility and compactibility and our products, supplied in a range of grades, are superior in every aspect. High quality is maintained through the careful selection of materials and the increasing standardization of the production process. Kobelco provides wide-ranging technical expertise both in the development of new products, and in proved manufacturing know-how.

The plant has a production capacity of 5,000 tons per month. It is fitted with the most technologically advanced equipment, including an electric arc furnace, a high pressure water jet atomizer, and two reduction furnaces in the production area, as well as sophisticated testing and inspection equipment in our laboratory. Two types of sintering furnaces are included in the plant to ensure that our sintered products are of the quality demanded by our customer. Careful attention has been paid to prevent environmental degradation both inside and outside the plant with the use of electric dust collectors, a furnace enclosure to reduce noise, and a sealed water system.

Kobelco's trademark is a name synonymous with quality, sound engineering, and a firm commitment to the quality of new products and services which will continue to meet the changing needs of a technological world. We are most proud that we received our QS-9000 designation in June of 1997 and continue to maintain the highest of quality standards today.