Alcoa/Kobe Steel Joint Venture Developments

Alcoa and Kobe Steel have announced that they will terminate their joint venture aluminium plants that produce aluminium can stock used in beverage cans. This decision has been undertaken as the joint ventures did not meet the expectations of either party.

The termination will affect two joint ventures, which were owned 50/50 between the two. Alcoa has agreed to hand over control of the Kaal Japan joint venture, while they will take over Kobe’s share of the Kaal Australia operation. Financial details of the transaction were not disclosed.

Alcoa will also grant Kobe a licence for cold rolling technology as used in the rolling mill in the Japanese operations, and will also act as a distributor for their can sheet products in Asia.

Despite terminating their can stock joint ventures, the two parties have agreed to expand their co-operative efforts developing aluminium products for the automotive market. This will be achieved by adding research and development efforts for aluminium extrusions, castings and forgings.

These added activities will enhance sheet activities provided by 50/50 joint ventures Kobe Alcoa Transportation Products in Japan and Alcoa Kobe Transportation Products in America formed in 1992.

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