Sumitomo Metal Industries Ltd (Sumitomo Metals) has announced that it has formed a joint venture with Voith Turbo GmbH & Co. KG (Voith Turbo) in Germany in January 2008 aimed at promoting the business of Permanent magnetic retarders abroad and has also started to develop a new model. The Permanent magnetic retarder is Sumitomo Metals’ unique secondary brake for commercial vehicles such as trucks and buses. The exhaust brake has conventionally been used as equipment to assist the brake of heavy-weight trucks and buses. However, due to environmental concerns regarding the reduction of carbon dioxide, improvements in fuel consumption, and other factors, the size of engine displacement has become smaller. This has degraded the performance of the exhaust brake, while the retarder is expected to replace it and be increasingly adopted. The installation rate for all retarders, which are mostly Sumitomo Metals’ permanent magnetic retarders, is about 40% in large-sized trucks and buses in Japan. In Europe and other regions, the hydrodynamic retarder produced by Voith Turbo is mainly used for trucks and buses of more than 16tns in weight. However, there has not been any product suitable in size and weight for medium-sized trucks and buses in the weight range of 7.5tns to 16tns. Sumitomo Metals’ own permanent magnet retarder has an overwhelming share (about 80% according to Sumitomo Metals’ estimates) of the domestic market. In order to expand overseas, the Company has established a joint venture with Voith Turbo, which has a high market share in retarders and well recognized in Europe. By making full use of Sumitomo Metals’ technology associated with permanent magnet retarders, the company will develop a new downsized lighter model and, by leveraging Voith Turbo’s global marketing power and using production facilities in Germany, Sumitomo aims to start business on a full-scale with manufacturers of trucks and buses in Europe and other regions. Once a full-fledged sales is launched to manufacturers of trucks and buses in Europe and other areas, Sumitomo aim to sell 10,000 sets per year in 2012 by manufacturing products in Germany, the production base of Voith Turbo.
