Furukawa-Sky Aluminum to Expand Cast Auto Parts Output

Furukawa-Sky Aluminum (Vietnam) Inc. will start commercial production of precisely casting aluminium automotive parts in March 2007, which was established by Furukawa-Sky Aluminum Corporation in Vietnam in January 2006. The subsidiary, called FSV, will complete construction of a new plant building by the end of 2006 and start test production at the beginning of 2007. Furukawa-Sky Aluminum aims to expand aluminium casting production to 1 million units per year as total of FSV and Oyama plant in Tochigi Prefecture, Japan in 2008 with world top productive share.Furukawa-Sky Aluminum has produced cast aluminium auto parts mainly at Oyama plant and committed some production to Furukawa Automotive Parts (Vietnam) in these 3 years, which is a subsidiary of Furukawa Automotive Parts in Furukawa Electric Group. Furukawa-Sky Aluminum considered establishment of the wholly owned subsidiary was necessary to meet increasing demand in Vietnam and decided to expand the output capacity.Furukawa-Sky Aluminum targets 250,000 units of annual production of cast aluminium auto parts at Oyama plant and 750,000 units at FSV in 2008, while regarding Oyama plant as a mother factory. In further future, the firm plans to produce cast aluminium auto parts at 100,000 units per year at Oyama plant and at 900,000 units at FSV. Oyama plant will focus on technology development rather than mass production, shifting most production to FSV. The world production share of precisely casting aluminium auto parts could exceed 50% with 1 million units output in 2008 and meet the increasing demand.