Daiki Plans Secondary Aluminium Alloy Output Expansion Globally in F2012

Japanese largest secondary aluminium alloy maker, Daiki Aluminium Industry plans to increase the production volume both at domestic and offshore plants in fiscal/ 2012 started in April compared fiscal 2011. The offshore production is expected to increase mainly in Thailand and Malaysia. Delta Aluminium Industry, Chinese secondary aluminium alloy maker headed in Guangdong in which Daiki holds 20% shares, also increased the monthly output to 10,000 tonnes in April. Daiki Aluminium sells 80% of Delta’s alloys.

Daiki plans to increase the production by 10% to 78,998 tonnes at Kameyama plant in fiscal 2012 from fiscal 2011, by 24% to 45,038 tonnes at Shiga plant, by 11% to 51,678 tonnes at Yuki plant and by 37% to 66,530 tonnes at Shirakawa plant.

These output plans include RSI (re-melted aluminium can scrap ingot). RSI production would decrease by 17% to 7,490 tonnes at Kameyama plant while the ouptut increase by 57% to 22,970 tonnes at Shirakawa plant. Kameyama plant will start aluminium melt supply in autumn of 2012. Daiki irregularly restarted Shinshiro plant in fiscal 2011 the plant while suspends the operation in fiscal 2012.

At overseas, Thai subsidiary plans to increase the production by 9% to around 74,000 tonnes. Malaysian subsidiary would increase the output by 9% to around 25,000 tonnes. Indonesian subsidiary currently produces secondary aluminium alloy at 700-1,000 tonnes per month against 2,200 tonnes of monthly capacity. The production is expected to increase largely after acquisition of the users’ certifications.

Delta Aluminium Industry completed the third-phase capacity expansion in March. The output capacity enlarged by 50% to 12,000 tonnes per month. The sales volume is expected to increase in China and for export mainly to Japan.