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HMC/KMC Connecting Rod Powder Forging Localization Plan LAUNCH PLAN

HMC/KMC Connecting Rod Powder Forging Localization Plan LAUNCH PLAN. November 30, 2005. Localization Assumptions. New program awards required for localization roadmap (KIA Lambda volume, and MU2 )

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HMC/KMC Connecting Rod Powder Forging Localization Plan LAUNCH PLAN

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  1. HMC/KMC Connecting Rod Powder Forging Localization Plan LAUNCH PLAN November 30, 2005

  2. Localization Assumptions • New program awards required for localization roadmap (KIA Lambda volume, and MU2 ) • KIA forged connecting rod business would be the initial localization step followed by HMC Lambda machining • Install flexible machining capacity to manufacture HMC Lambda and MU2 programs • Beyond current US investment, Metaldyne is committing to approximately $45M in investment to support HMC/KMC

  3. MANUFACTURING PLAN

  4. MKL Building Expansion PHASE 2 PHASE 1 • MKL Building Expansion • Floor space requirements: • Year 1: Forge Module A= 1600m2 • Year 2: Machining Line 1 = 1100m2 • Year 3: Machining Line 2 = 2200m2 • Year 3: Forge Module B = 1600m2 • Equipment installation • 2007 SOP: Powder Forge Module A • 2008 SOP: Machining Line 1 • 2009 SOP: Machining Line 2 • 2009 SOP: Powder Forge Module B Powder Forge Manufacturing Installation (2) Modules = 4,000 m2

  5. Manufacturing Plan Forging Machining • Launch LAMBDA KIA forging at NV: • Review KIA machining line • KIA forging ISIR Approval • SOP: JULY ’06 • Transfer powder forging Module A to MKL: • ISIR Approval • Ramp down NV – Ramp up MKL • SOP; JULY ‘07 • Launch LAMBDA HMC forging and finish machining at MKL: • Install 1.8M machining capacity • Flexible line for Lambda & MU2 • LAMBDA HMC ISIR Approval • Ramp down NV-Ramp up MKL • SOP: JULY ’08 • Launch MU2 forging and finish machining at MKL: • Install Powder Forging Module B • SOP: 2009 • Install incremental machining capacity for MU2 LAMBDA KIA LAMBDA HMC

  6. Launch Timing

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