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13. April 2007

Asahi Tec Establishes

New Joint Venture Company in China

ASAHI TEC CORPORATION todayannounced its second aluminum wheel manufacturing joint venture withWheelhorse Aluminum Casting Co., Ltd., which will double its productioncapacity in China. 

The joint venture named Wheelhorse Asahi Aluminum Co., Ltd. (WAA) andlocated in Guandzou City, China, will produce one million wheels per yearby the end of 2007. In addition, the company's existing joint venture,Dicastal Asahi Aluminum (DAA), currently builds approximately one millionwheels, raising the company's production capacity to two million wheels inChina. Including the production capacity of 1.6 million pieces per yearfrom its subsidiary in Thailand, ASAHI TEC can now provide 3.6 millionpieces 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 ANCmanufacturing method has an advantage in the lightweight aluminum wheelproducts. ANC is a unique casting method of ASAHI TEC that has evolved fromthe Center Gate LPD. The wheel's design surface can be cooled rapidly byhaving two gates on both sides of the mold instead of an ordinary singlegate on the designed side of a wheel. Aluminum alloy gains strength andinner 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.

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