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Sintered valve guides are increasingly used in various engine applications due to their superior durability and cost. Typical valve guide materials are low alloyed materials of the type Fe-Cu-C. More severe applications may require higher alloying content. One such application is EGR where the exhaust temperatures are much higher as compared to the conventional automotive valve guide. A new material was developed to work in this harsh environment. The object of this paper is to report development of this material including material properties and durability test results.