Showa Denko Packaging to Expand Electric Materials

Showa Denko Packaging will focus to expand electric materials including packaging of battery, entry sheet and clean bag under the firm demand while the firm tries to pass the higher cost price of raw materials on the selling price. The firm will contribute to Showa Denko’s new mid-term business plan with higher operating profit target as one of the group companies.Showa Denko Packaging produces cap seal, aluminium package and electric materials mainly. The firm is suffered from lower demand when the cap products sales in January and February were around 90% of a year earlier. The firm tries to expand the sales of packaging products by making use of advantage in the market. The firm will market new products in the year by expanding the business field from packaging of gift sweets to cooked foods. The firm also increases the packaging of battery for mobile products from traditional cell phone to personal computers, digital versatile disc and portable audio players, which use polymer battery.The raw materials price surged for plastics, film and aluminium ingot since 2005. The firm cannot change the materials to others and offshore sources because many of the materials are fixed in the specifications. The firm said it is forced to increase the selling price to cover the higher cost price when the firm has to accept reasonable price hikes by materials providers.