In an agreement signed Wednesday, Hoeganaes AB, through its subsidiary North American Hoeganaes Inc., will take over the business of Kobelco Metal Powder of America, Inc. (KOMPA) – a subsidiary of Kobe Steel, Ltd. According to the agreement, KOMPA in Seymour, Ind., will transition production and marketing to North American Hoeganaes and will cease powder production in spring 2009.

A new joint-venture company called KHTech Inc. will be formed to facilitate a smooth transition to North American Hoeganaes. KHTech will be owned two-thirds by North American Hoeganaes and one-third by KOMPA.