The recent progress of electronic control systems in vehicles is remarkable as evidenced by the development of electronic fuel injection systems,(EFI), automatic transmission control systems, and anti-lock brake systems,(ABS). The number of actuators for the systems has been increasing.Consequently, a need has been identified for a reduction in volume and number of the system actuators for control purposes. A composite magnetic material has been developed with the aim of miniaturizing magnetic solenoid valves for actuator applications. A composite magnetic material is such that both ferromagnetic and paramagnetic sections coexist within a single material, and can contribute to optimization of the magnetic circuit of a solenoid valve.This paper describes the development of a composite magnetic material, and its resultant characteristics. The chemical composition of the material, essentially 18% Chromium - 8% Nickel stainless steel, required to improve both ferromagnetic and paramagnetic properties and the process of producing composite magnetic properties are reported in detail.This composite magnetic material exhibited superior properties, having a magnetic flux density B40 (Induction at H of 4000A/m) of 0.8 Tesla in the ferromagnetic section, and relative permeability μ r of 1.01 in the paramagnetic section. The application of this material to a magnetic solenoid valve for ABS could reduce by approximately 20% volume.