Koyo Buys Out Partner in TRW Koyo Steering Systems Co.

Koyo Seiko Co. Ltd. (Japan) is buying out its U.S. joint venture partner in TRW Koyo Steering Systems Co. (TKS, USA). Currently, Northrop Grumman owns 51% and Koyo owns 49%. TKS was formed in 1988 when Koyo Seiko and TRW (USA) agreed to join forces and approach the growing number of Asian automakers setting up manufacturing facilities in the U.S. TRW was the world's largest manufacturer of steering gears, and Koyo is Japan's largest. Koyo has been manufacturing steering systems and components since 1960 at its Kokubu plant, and electronic power steering systems since 1984, the first Japanese company to do so. TKS is one of several Koyo steering gear joint ventures, the others being in Malaysia, India, Thailand, the Czech Republic, China and Brazil. The U.S. TKS joint venture worked to the market strengths of both companies; they had been involved in a similar steering gear joint venture, TRW Koyo Co. Ltd., since 1969. TRW Koyo Steering Systems Co. chose to build in Vonore, Tennessee. Completed in 1989, the facility covers more than 300,000 square feet. At Vonore, TKS currently manufactures power rack and pinion steering gears and hose assemblies. TRW was acquired by Northrop Grumman (USA) in early 2003. Grumman always said it was only interested in TRW's defense and aerospace businesses, and would immediately sell off all other TRW operations. In fact, prior to Grumman's acquisition of TRW, The Blackstone Group acquired essentially all of TRW's automotive-related businesses.