Visions - Spring 2008 - 6

A Look at SCOA Automotive Related Businesses T H E B O N E S (Continued from page 4) Each of the SCOA steel-related subsidiaries is strategically located in the central area of Mexico where automotive manufacturers all have factories and assembly facilities. They also are located close to manufacturers’ tier-1 or direct suppliers where they can be an integrated service provider for value-added business. To further that business purpose, SCOA/SCMX and SC, along with Noble International Ltd., opened a factory in Silao, Mexico to supply laser welded steel blanks to auto manufacturing plants in Mexico (Noble and SCOA have been working together since 2001). Noble International Ltd. retains a majority stake and manages the 60,000 foot facility. Laser welded blanks are created by joining flat sheet metal blanks of varying thicknesses, alloys and/or coatings into one piece using laser welding systems. These steel pieces, once fitted together, help form the overall shape of the car. This technology was originally developed for military use, but moved into civilian products in the 1980s. Its increasing popularity in the automotive industry is due to its greater dimensional variation, increased rigidity and lighter weight of the laser welded parts as compared to conventional blanks. In 2006, Noble International Ltd. experienced about 40 percent of the market for laser welded steel and is the largest supplier of laser welded blanks to the North American automotive industry. They operate four other facilities with a total of 29 laser welding systems that are capable of producing nearly 20 million laser welded blanks annually. Sumitomo and Noble have plans to open another laser welding plant later this year. Back in 2005, General Motors requested that SCOA/SCMX subsidiary AVENTEC supply the laser welding blanks for its Mexico manufacturing operation, and this was the impetus for the creation of Noble Summit. This was SC’s first foray into the laser welded steel business in North America, with much success to follow. In 2008, AVENTEC’s name officially changed to Hirotec Mexico. In Mexico, Hirotec has been more of a “hands-on” supplier in the automotive manufacturing arena. Hirotec, with headquarters in Silao, Guanajuato, Mexico, has been supplying whole doors, back doors, fenders, roofs and hoods for car companies, a unique position since these parts are usually produced in an automakers’ plant. Hirotec received the Q1 Award from Ford Motor Company, as well as the ISO 9001 and the ISO 14001, and continues to experience a track record of progressive growth in the marketplace. Hirotec currently has contracts with Silao-located auto manufacturing plants that supply several large automotive manufacturing companies. Hirotec has consistently been a top supplier to the Silao plant, whose output includes large trucks, SUVs and pickup trucks. T H E M U S C L E (Continued from page 4) And just as the crankshaft helps the car move forward, the crankshaft business helps SCOA move forward as well. The total crankshaft business approaches nearly $100 million in sales per year for SCOA. Generally, one can understand the crankshaft’s role as creating a connection between the engine’s firing pistons and the car’s turning wheels through the transmission. Increasingly, manufacturers tend to favor the use of steel-forged crankshafts due to their lighter weight and better overall performance characteristics, which ensures an engine’s smooth operation. International Crankshaft Inc. (ICI) is a joint-venture company established by Sumitomo Metal Industries, Ltd. and Sumitomo Corporation, for the manufacture and sale of forged crankshafts in the United States. ICI has proved to be a stellar example of success and is consistently in high demand. SCOA promotes and supports ICI’s sales of crankshafts in North America, and Sumitomo Metals Industries Ltd. serves as technical partner and majority owner of ICI. Established in Georgetown, Kentucky in 1992, ICI purchases steel from all over the world, depending on availability, quality and price. SCOA’s crankshaft customers in the passenger car and light truck field include Toyota, Honda, Hyundai, Chrysler, and General Motors. ICI is currently running its two forging press lines at full capacity in response to burgeoning North American demand for forged crankshafts. And as the market continues to expand, ICI will expand to serve its customers. A third forging press line is under construction and scheduled to commence volume production in January 2009, raising capacity from about 1.5 million to nearly 2.7 million units/year. 6 visions Spring | Summer 2008

Visions - Spring 2008

Table of Contents for the Digital Edition of Visions - Spring 2008