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Asahi Tec Establishes New Joint Venture Company in China


April 2007
 Filed under: AUTOMOTIVE MANUFACTURING Car News | AUTOMOTIVE MANUFACTURING Headlines
SHIZUOKA, Japan, April 13 /PRNewswire/ -- ASAHI TEC CORPORATION today announced its second aluminum wheel manufacturing joint venture with Wheelhorse Aluminum Casting Co., Ltd., which will double its production capacity in China.

The joint venture named Wheelhorse Asahi Aluminum Co., Ltd. (WAA) and located in Guandzou City, China, will produce one million wheels per year by the end of 2007. In addition, the company's existing joint venture, Dicastal Asahi Aluminum (DAA), currently builds approximately one million wheels, raising the company's production capacity to two million wheels in China. Including the production capacity of 1.6 million pieces per year from its subsidiary in Thailand, ASAHI TEC can now provide 3.6 million pieces annually to its current customers in Japan, Thailand and China.

WAA uses ASAHI TEC's original low pressure die-casing technologies, ASAHI NEW CASTING (ANC), and center-gate low pressure die-casting. The ANC manufacturing method has an advantage in the lightweight aluminum wheel products. ANC is a unique casting method of ASAHI TEC that has evolved from the Center Gate LPD. The wheel's design surface can be cooled rapidly by having two gates on both sides of the mold instead of an ordinary single gate on the designed side of a wheel. Aluminum alloy gains strength and inner quality consistency with rapid cooling, thus realizing thin-walled, light weight, and strong aluminum wheels with refined metal structure.

WAA currently delivers its products to Japanese OEMs.

About WAA (Wheelhorse Asahi Aluminum Co., Ltd.) Place Zengcheng City, Guangzhou, China Capital 50 million RMB Holding ratio ASAHI TEC CORPORATION 30% Wheelhorse Aluminum Casting Co., Ltd. 70% Business Aluminum wheel production for passenger vehicle Established March 2007

About Wheelhorse

Wheelhorse is a Chinese aluminum wheel manufacturer established in 1999, which produces 0.6 million aluminum (or 600 thousand) wheels annually. in Zengcheng City, Guanzhou, China. Wheelhorse is a subsidiary of the Dongling Group, a multilateral company that produces auto-parts, grain processing products and is involved in the hotel business as well as other operations.

ASAHI TEC History in China

ASAHI TEC's first joint venture aluminum wheel production company, Dicastal Asahi Aluminum, was established in 2003. ASAHI TEC also has a joint venture research and development company with the Dongling Group, Guangzhou Asahi Dongling Research & Development Co., Ltd., which was established in 2005. WAA is the third joint venture operation in China.

About ASAHI TEC

Headquartered in Shizuoka, Japan, ASAHI TEC primarily designs, manufactures and sells ductile iron cast auto parts for truck and construction machinery OEMs, aluminum casting parts for truck and passenger car OEMs and aluminum wheels for automobile OEMs. ASAHI TEC also designs, manufactures and sells environmental systems, equipment and development technologies used by local governments and municipalities and electrical hardware and equipment used by electricity generators.

Its subsidiary, Metaldyne, is a leading global designer and supplier of metal-based components, assemblies and modules for transportation related powertrain and chassis applications including engine, transmission/transfer case, wheel-end and suspension, axle and driveline, and noise and vibration control products to the motor vehicle industry. It is headquartered in Plymouth, Mich.

ASAHI TEC has annual revenues of approximately $2.7 billion and employs approximately 10,000 employees at 55 facilities in 15 countries.

For more information, please visit www.asahitec.co.jp and www.metaldyne.com

Source: Asahi Tec Corporation

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