Nippon Light Metal Withdraws from Vietnamese Al Hydroxide Project

Nippon Light Metal will withdraw from an aluminium hydroxide plant project in Vietnam. Sojitz, Japanese major trading house and the project partner, will take over the plant construction plan and continue a feasibility study.The project aims to establish a joint venture company and plant of aluminium hydroxide for chemical usages partaken by Nippon Light Metal, Sojitz, Vietnam National Chemical Corporation (VINACHEM) and VINACHEM’s subsidiary, South Basic Chemicals. They plan to explore bauxite mining areas and decide the plant site by the end of 2008. The output capacity of the plant is scheduled at 550,000 tonnes per annum.Total expenditure is estimated at approximately 40 billion yen. They planed to raise the fund mainly from Japan Bank for International Cooperation. However, Nippon Light Metal will withdraw from the project and the rest participants will continue the plan.Nippon Light Metal will continue its own aluminium hydroxide business. The firm may examine aluminium hydroxide procurement from overseas for the future.