The acquisition agreement requires Kobelco, based in Seymour, Ind., to relocate its steel powder production and sales to Haguenas North America after a transition period. During the transition period, Kobelco will produce steel powder products under the commission of Haguenas North America. Kobelco expects to stop powder production after the end of the spring 2009 transition period.
North America's Höganäs and Kobe Steel will form a new joint venture called KHTech Inc, which provides technical services and sales support for Kobelo's Japanese customers in the US and other US customers. North America Hughnas accounted for 66.6% of KHTech and Kobelco accounted for 33.3%.
At the signing ceremony with Kobe Steel, Algon Danielson, CEO of Höganäs AB, said: "The creation of KHTech will further promote the development of new applications for powder metallurgy."
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