NLM Talks with China Aluminium Plate Maker on Share Acquisition

Nippon Light Metal (NLM) is talking with Chinese aluminium plate maker to take the shares in the re-roller. NLM’s executive officer revealed at a press conference in Tokyo on Friday. The share acquisition cost and the share taking rate were not revealed. NLM would launch aluminium plate business in China for the first time.

The negotiating partner is Shanghai based aluminium re-roller of local capital. NLM’s officer said NLM and the re-roller have continued the talks on NLM’s share acquisition and almost agreed in the outline. The companies are deciding the details toward the concrete agreement. NLM’s officer indicated NLM would not make the re-roller to be NLM’s subsidiary.

NLM will provide technical support to the re-roller in order to launch mass production of high grade aluminium plate along with the local demand growth. NLM also eyes the supply of high grade aluminium plate from the re-roller to NLM’s group companies in China and Asia.

NLM considers aluminium plate supply to Shangdong Conglin Fruehauf Automobile, which is a joint company among NLM, Nippon Fruehauf and other enterprises to manufacture and sell trailers in China. NLM also examines aluminium plate supply to Nikkei Siam Aluminium, Thai affiliate to produce heat exchanger materials.