Kokan Drum to Strengthen Alliance with
Dynetek in Fuel Cylinder Field
NKK subsidiary Kokan Drum Co. will strengthen its alliance with Dynetek Industries Ltd., a leading Canadian manufacturer of high-pressure fuel cylinders both for vehicles powered by compressed natural gas (CNG) and fuel cells. Kokan Drum will acquire a 3% stake in the Calgary-based company and explore business opportunities in Japan, including the joint manufacture of cylinders.
Low-emission vehicles powered by CNG and fuel cells are attracting much attention in Japan because of their reduced impact on the environment. A joint action plan to promote increased use of such vehicles was introduced by three government ministries in July 2001, signaling the start of a full-scale effort to lower diesel exhaust emissions in the country.
Fuel cylinders for CNG vehicles are made of either steel or fiber-reinforced plastic (FRP). Kokan Drum purchases steel cylinders from Faber Industrie SpA of Italy and FRP cylinders from Dynetek. Once the cylinders are certified for quality, Kokan Drum combines them with valves and other components for supply as finished products to most auto makers in Japan. Kokan Drum is also a major supplier of FRP cylinders for storing hydrogen gas in vehicle fuel cells.
Dynetek's "DyneCell" FRP cylinder features a thin aluminum liner reinforced with carbon fiber. Combining strength and light weight, it is one of the most highly reputed tanks for CNG vehicles. Dynetek is also a leading developer of high-pressure hydrogen gas cylinders.
Kokan Drum has been Dynetek's sole agent in Japan since 1998. Considering the potential of Japan's growing market for CNG vehicles, as well as the increasing practicality of fuel cell vehicles, Kokan Drum has great hopes for its expanded alliance with Dynetek, backed by enhanced technical support from NKK.
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