The aim is to develop a model that allows the prediction of the austenite transformation to bainite in low-alloy sintered steels allowing the design of new PM steels with optimised properties. In this project a gradient technique will be applied in order to experimentally analyse the effect of composition on the transformation behaviour. The microstructures will be studied by LOM, SEM, and FEGSEM and possibly with TEM and EBSD, and the local composition will be measured by EMPA. A promising model for acicular ferrite has been developed at KTH and this model will be extended. This model is based on a combined kinetic and thermodynamic approach. This project is in collaboration with SIMR.