In a move designed to strengthen its position as the world's top investment casting producer, HOWMET CORP. exercised its option to increase ownership of KOMATSU- HOWMET, LTD. to 81 percent from 50 percent. The joint venture with KOMATSU LTD. was formed in 1972, a decade after the Greenwich, Connecticut manufacturer signed a licensing agreement with Komatsu. In 1995, Komatsu-Howmet moved into a new plant in Terai, Ishikawa prefecture. It makes precision investment castings in nickel-, cobalt- and iron-based alloys for aerospace and industrial gas turbine applications. Sales in 1997 were $37.9 million. Major customers include ISHIKAWAJIMA-HARIMA HEAVY INDUSTRIES CO., LTD., KAWASAKI HEAVY INDUSTRIES, LTD. and MITSUBISHI HEAVY INDUSTRIES, LTD.
FEDERAL-MOGUL CORP. and DAIDO METAL CO., LTD., said to be the only bearing manufacturers able to supply a complete range of plain bearings, will establish a company in October to manufacture and sell rotating plant bearings for generators that each has developed. The Southfield, Michigan-based partner will put up 40 percent of the capital for DAIDO GRACIER RPB CO., LTD., which will operate out of Daido Metal's Nagoya headquarters. The venture is projecting revenues of $10 million in 1999. Federal-Mogul and Daido Metal announced at the same time an agreement to form a company to make and market plain bearings for nonautomotive diesel engines, using as their base the American firm's plants in England and France.
An exchange rate of ¥140=$1.00 was used in this report.