Showa Denko Doubles the Expenditure in 2006

Showa Denko will increase the capital expenditure by 119.9% to 90.6 billion yen for the year to December 2006 from 2005. The firm increases the expenditure by 220% to 65.6 billion yen for the electronics and information business including expansion of hard disc output capacity. The firm also increases the expenditure by 25% to 10 billion yen for the aluminium unit. The firm plans aggressive expenditure for the growth.The firm tries to seek another growth under the new mid-term business plan, Passion Project. The firm invests in 2006 around half of the 200 billion yen of the planned expenditure for the 3 years.The firm expends major part of the investment in 2006 for electronics and information business to meet higher demand for hard disc. The firm will expand the hard disc output capacity to 24 million units for the group by 2008.The firm also expands the aluminium bottle can output capacity. The firm produces the output from 80 million units in 2005 to 150 million units in 2006 and expands the capacity to 200 million units by the end of 2006.The firm considers adding new facility to make high purity aluminium ingot at Sakai plant with 1,000 tonnes of averaged monthly output. The firm tries to improve the quality and cost structure by the investment.