Kobe Steel Ltd has reached agreement to sell the business of its US based subsidiary Kobelco Metal Powder of America Inc to North American Höganäs Inc, a subsidiary of Sweden's Höganäs AB. The agreement was signed on July 9th 2008 at Pennsylvania in USA.

The agreement calls for KOMPA, located at Seymour in Indiana to shift production and marketing of its steel powder to North American Höganäs over a brief period as customers transition to the material made by the subsidiary of the Swedish group. During this period, KOMPA will produce steel powder products under consignment from North American Höganäs. KOMPA expects to cease powder production in spring 2009 upon completion of transitioning its customers' requirements to North American Höganäs.

To support the smooth transition to North American Höganäs, KOMPA and North American Höganäs will form a new company called KHTech Inc. This joint venture company will provide technical services and sales support primarily to KOMPA's Japanese customers in the United States as well as to its other current US customers. KHTech shall be owned two-thirds by North American Höganäs and one third by KOMPA.