Sumitomo Light Metal Industries Ltd. and Kobe Steel Ltd. said Tuesday they have signed an agreement to form broad tieups in the aluminum extrusion business.
Under the agreement, the two will set up committees to study possible collaboration in cross production, reducing distribution costs and four other areas over a year.
A business tieup in each area will be implemented when the two deem a cooperative relationship in the given area feasible.
The four other areas are standardization and joint procurement of supplies, sharing production facilities, cross-licensing production technologies, and research and development.
Aluminum extrusions, such as tubes and bars, enable the manufacture of lightweight products with complex cross sections.
Sumitomo Light Metal and Kobe Steel are leading suppliers of aluminum extrusions to the nonconstruction market, including the transportation and office equipment industries.