Noble and WISCO ink JV agreement

The US-headquartered Noble International Ltd (Noble) has announced the signing of a long-term joint venture agreement with a wholly-owned subsidiary of China's third largest steelmaker, Wuhan Iron and Steel Corporation (WISCO), as part of a move to enter the Chinese automotive market for laser-welded blanks. The 50/50 joint venture will operate under the name WISCO Noble Laser Welding Technology Co. Ltd. The new JV is due to receive final approval from the Chinese government in the first quarter of 2007 and is expected to begin laser-welded blank production during the second half of 2007. Under the terms of the joint venture agreement, Noble and WISCO will each invest up to $1.25 million in cash. A laser-welded automotive blank consists of two or more sheets of metal seam-welded together into a single “blank” which is then stamped into a part. Laser-welded automotive blank technology allows for the placement of various steel grades and thicknesses within a specific part, placing steel's attributes where they are most needed and removing weight that does not contribute to performance. There are several advantages for automobile manufacturers in using laser-welded blanks. First, laser-welded blanks are lighter and provide superior structural rigidity than components manufactured using traditional methods. Second, the reduced weight results in fewer emissions and better fuel economy. Third, there are cost savings through reduced scrap, increased structural efficiency and part consolidation.