Mitsubishi Aluminum to Expand Flat Products Output by 10%

Mitsubishi Aluminum announced on Tuesday the 7 billion yen capital expenditure plan including new hot finishing mill at Fuji plant, Shizuoka provided by Ishikawajima-Harima Heavy Industries to improve the quality of flat products and production efficiency. The firm plans to finish the working for the new facilities in autumn 2009. The aluminium flat products output capacity will increase by around 10%. Fuji plant has produced flat products at a facility both for roughing roll and finishing roll since the start in 1964. However, the yield and productivity get worse in recent years due to slower line speed for more processing and higher quality. The firm considered improvement of the facility when the line couldn’t make higher quality products especially for can materials, automotive heat exchanger and printing plate. The firm tries to improve the quality and yield with the new finishing line. The firm expects the modernization reduces cost and stock in process along with shorter lead time with efficient process. The firm secures the budget other than planned 3.5 billion yen of capital expenditure for fiscal 2006 ending March 2007. The firm also adds relative equipments for rolling process and repairs warehouse for finished products. The new finishing mill can reduce the thickness to 2 millimeters compared with 8 mm now. The thinner products could improve the cold rolling process. The output capacity will increase by around 1,500 tonnes from current 13,000 tonnes per month. The firm tries to expand the flat products output capacity and renew the production processes under the mid-term business plan. The firm seeks better competitiveness through the improvement for the core business line including extrusion and foil products.