Kobe Steel and Kawasaki Heavy Industries have agreed to transfer the manufacturing of crushing equipment to their 50/50 joint venture, Earth Technica Co, on April 1, 2005, the two companies said.

Earth Technica currently designs and markets crushing equipment.
The domestic Japanese aggregate market, the main market for the crushing equipment business, has been shrinking due to structural changes brought about by the decrease in public works, and a recovery is difficult to foresee, Kobe Steel and Kawasaki said. The two companies hold leading positions in Japan’s crusher market. With their main products being highly competitive, their respective menus complement each other. Utilising their know-how in crusher technology in the growing environmental business, Kobe is involved in soil remediation, while Kawasaki supplies refuse paper and plastic fuel systems to the recycling field.
On this background, Kobe and Kawasaki agreed in January 2003 to merge their crushing equipment businesses, as both saw each other as ideal partners. They also announced they would later shift manufacturing to Earth Technica. As a first step, the two companies transferred the marketing and design portions of their businesses to the joint venture, which began operations in July 2003. EarthTechnica will become an independent unit with marketing, design and manufacturing functions.
Its business activities will encompass the design manufacture and sale of crushers, grinding mills and separators, waste cycling equipment and wear and heat-resistant cast parts for crushers.
 In addition to the mutual use of sales networks, the improvement in product line-up, and the advantages of new product development, sales and technology, the joint venture benefits from higher production efficiency, lower supply costs, and the streamlining of duplicated functions. The integration of manufacturing will further strengthen the business foundation of the joint venture.
 Earth Technica aims to further develop by focusing on environmental and other new areas that are anticipated to grow in the medium to long-term future.
Kawasaki’s fiscal sales in 2003 sales were 11.5 billion yen ($111 million) for its crushing equipment business and Kobe Steel’s sales were 5.7 billion yen.