Nikkei MC Aluminum to Develop Offshore Market and New Alloys

Nikkei MC Aluminum, established by Nippon Light Metal and Mitsubishi Corporation in April 2007 as a joint venture for aluminium alloy business, will improve its profitability by expansion of overseas businesses and new alloy development. Koji Kawakami, president of Nikkei MC Aluminum, explained the growth strategy to Japan Metal Bulletin.Mr. Kawakami explained the firm estimates the net sales of 90 billion yen and the recurring profit of 2 billion yen for fiscal 2007 started April when overseas aluminium market stays high. He said the firm targets the recurring profit at 2.6 billion yen in fiscal 2009 with advantage of business integration between NLM and Mitsubishi Corp. The JV holds annual output capacity of 190,000 tonnes at home and 120,000 tonnes at overseas and maintains full production thanks to active demand for aluminium alloy from automotive industry, he explained.Mr. Kawakami said the firm finished recent capital expenditure for plants in Korat, Thailand and Kunshan, China. He suggested the firm might establish a new plant in India, China, Russia, Brazil or Vietnam. The firm will advance feasibility studies deliberately in point of material procurement, he said, because the establishment of a new plant would cost 1-2 billion yen.Mr. Kawakami expected its aluminium alloy melting business could grow up to the more profitable unit in future which is advantageous in energy costs. He said the firm examines the business expansion which now accounts for about 10% of the total sales. He also suggested the firm concentrates in development of high-value-added aluminium alloy applied to special parts of automotive engines.