Throughout the period, investments were made to modernize and strengthen production. New pickling lines, heat treatment facilities and additional peeling capacity improved both quality and productivity. In 1993, an important milestone marked the end of an era. Ovako Hofors closed its wire rod mill, ending the supply of entirely Swedish-produced valve spring steel. At the same time, high-quality steel from Kobe Steel in Japan had become an increasingly important material for valve spring wire production.
The company also expanded its range of products.
In 1994, production began of valve spring wire with an oval cross-section. The new design improved spring performance and demand for the new product grew rapidly, leading to further investments in specialized production technology for profile-shaped wire. New products were also introduced for applications such as emission control systems, retaining ring springs, stainless steel fishing hook wire, and lead wire products opening opportunities in new markets.
By the mid-1990s, the company had reached a new stage of development.
1995 became a record year. The growing use of multi-valve engine technology expanded the market for valve spring wire, and annual sales reached 25,000 tonnes. The same year also brought new challenges. The Kobe earthquake in Japan disrupted the supply of wire rod, but alternative suppliers were quickly approved to secure continued production.
Growing demand from North American customers also highlighted the need to be closer to the market. As lead times from Sweden became a challenge, the company decided to establish local production in the US. South Bend was chosen for its location in the heart of the US automotive manufacturing region, close to many of the company's customers and suppliers. Local production would shorten lead times, improve responsiveness, and create a strong platform for future growth.
The investment marked the beginning of the company's international expansion.
Looking back, this decade was defined by technological development, strong growth and the first steps towards international expansion. Investments in production, new products and record sales strengthened the company's position, while the decision to establish production in the United States marked the beginning of a new chapter.
The foundations were now in place for the company's continued international development.
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