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2002 News Release
July 31 
July 31, 2002
Full-Scale Mass Production of Hitachi Metals' SCUBA™ Wide-Rimmed Custom Design Aluminum Wheels
Tokyo, Japan, July 31, 2002-Hitachi Metals, Ltd. announced today that it has expanded production lines and readied full-scale mass production for its SCUBA™ wide-rimmed custom design aluminum wheels in response to surging demand.
SCUBA™
1. Background
Hitachi Metals is one of the world's top-ranking companies in terms of aluminum wheel design and manufacturing technologies. Leveraging these technologies, Hitachi Metals first developed its SCUBA™ wide-rimmed custom design aluminum wheels in fiscal 2000.While aluminum automobile wheels are an important functional component, contributing to fuel economy and handling, they are also highly influenced by consumer tastes, making shape, color, and design, extremely important factors. With increasing emphasis on style among automobile buyers and auto manufacturers' struggle for differentiation, as well as the growth of the recreational vehicle (RV) and sport utility vehicle (SUV) markets, the aluminum wheel market is experiencing dramatic growth in wider rimmed products (17 to 21 inches) with stylish designs.
In response this increased demand, Hitachi Metals has taken the step of expanding production lines for its SCUBA™ products and commencing full-scale mass production.
2. Special Features of SCUBA™
The result of Hitachi Metal's own design acumen and unique manufacturing methods, SCUBA™ (Sharp style Casting and Uncompromised Bright Appearance) is a breakthrough product that satisfies strength and rigidity requirements while also achieving a substantial reduction in weight (20% to 30% lighter than previous wheels manufactured by Hitachi Metals). Capable of sharp design styling, it is also compatible with high-grade surface treatment.In addition, the short development time, achieved through CAE (computer-aided engineering) and IT as well as highly stable supply achieved through Hitachi Metals' independently developed high-efficiency mass production lines have won over many automobile manufacturers, who have incorporated SCUBA™ wheels into many of their latest models. Purchase orders in the amount of more than 60,000 units per month have already been confirmed for the second half of fiscal 2003.
3. Overview of Full-Scale Mass Production Plans
Following development in fiscal 2000, the Kumagaya Light Alloys Plant has been producing 10,000 SCUBA™ units per month. During fiscal 2002, Hitachi Metals will invest approximately ¥0.7 billion in installing new casting machines and one new heat treatment machine. Having been developed and continually refined by Hitachi Metals' Production Systems Laboratory, these casting machines possess high levels of precision and productivity. With the installation of this new equipment, production capacity will be increased to 60,000 units per month by the second half of fiscal 2003.Furthermore, in response to the global trend in aluminum wheels toward wider rims and sophisticated design, Hitachi Metals is planning on technology transfers and new equipment installation at its subsidiaries in the United States as well as provision of technologies to European companies.
Such trends in the global market for aluminum wheels are anticipated to continue, and Hitachi Metals will continue to augment its production facilities accordingly and aims to achieve production capacity of 100,000 units per month by fiscal 2005.
Going forward, Hitachi Metals will establish three global production centers and strive to attain the world's top market share in wide diameter cast aluminum wheels with the SCUBA™ brand.
4. Patents
Five patents pending5. Sales Projection
Present: 10,000 units per monthFiscal 2002: 20,000 units per month
Fiscal 2003: 60,000 units per month
Fiscal 2005: 100,000 units per month
6. Manufacture and Sales
Manufacturing: Automotive Components Company, Kumagaya Light Alloy Plant (located in Kumagaya, Saitama Prefecture)Sales: Automotive Components Company
Inquiries:
| Press matters: | Public Relations Office Officer in charge: Kobayashi Tel:+81-3-5765-4079 |
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| Product information: | Automotive Components
Company Officer in charge: Okazaki Tel: +81-3-5765-4239 |
