Shanghai Sigma Metals to Expand Market Share in China, Japan

Shanghai Sigma Metals of China tries to expand the sales volume of secondary alloyed aluminium to Chinese market and Japan by reducing the price. The firm tries to expand the share both in China and Japan by reducing the price gap with rivals. The firm tries to improve the cost competitiveness through expansion, optimization and automation.

The firm renews 5 of 7 furnaces with 55 tonnes capacity each into 100 tonnes furnaces. Through the expansion, the melting capacity increases by around 34% to 35,000 tonnes per month by November. The firm expects higher productivity along with higher output. The firm already added a casting line to total 3 lines.

The firm increases the production to monthly 30,000 tonnes in late 2012 from 18,000 tonnes level under expansion work. The group company of Zhangzhou Sigma Metals also renews the melting furnace in first half of the year. The output capacity increases from monthly 5,000 tonnes to 10,000 tonnes.

The group reduces the selling price to reduce the US$ 60-100 per tonne of price gap with the rivals to US$ 20-30 level. The group starts the price reduction campaign in and after June to expand the market share at home and Japan.