Showa Denko to Delay Alumina Plant Project in Indonesia

Showa Denko postpones a decision about a feasibility study on construction of an integrated alumina plant in Indonesia. The firm planned to make the final decision as early as in 2008. The firm watches the business environment carefully for the feasibility under the financial crisis.

Showa Denko established a joint venture company, Indonesia Chemical Alumina, to study the feasibility of mining of bauxite ore and alumina production in the Tayan district, West Kalimantan, Indonesia with another 3 companies in July 2007. They have verified that Tayan district has reserves of high quality bauxite ore and estimate the chemical grade alumina capacity is 300,000 tonnes per year. The plant is estimated to be the world largest scale.

Showa Denko is producing alumina for non-smelting purpose at Yokohama plant and is selling the product mainly in domestic market.

Nippon Light Metal has indicated the willingness to quit FS for alumina business in Vietnam with Sojitz and Vietnamese company.