Daiki Expands Secondary Al Alloy Production in Southeast Asia

Daiki Aluminium Industry, Japanese largest secondary aluminium alloy maker, aims to raise its sales share in Southeast Asia to 26% in 2013 from current 11%. The firm follows the demand expansion in Thailand, Indonesia, Malaysia, Philippines and Vietnam where automobile and motorcycle markets are expected to increase along regional economic growth.

Daiki estimates regional demand for secondary aluminium alloy in Southeast Asia was 652,000 tonnes in 2009. The demand is expected to approach 800,000 tonnes in 2013, according to Daiki. Daiki now supplies secondary aluminium alloy to the regional market mainly from its plants in Thailand and Malaysia.

In 2013, Daiki’s new plants in Philippines and Indonesia will enter full capacity operations. Anglo Asia Trading’s Vietnamese plant is also expected to increase its secondary aluminium alloy production, in which Daiki holds an interest.

Productions are forecasted to increase by 2.6 times to 87,600 tonnes in Thailand in 2013 compared with 2009 while by 2.2 times to 28,800 tonnes in Malaysia. Productions will also increase to 7,800 tonnes in Philippines, 54,000 tonnes in Indonesia and 21,600 tonnes in Vietnam.

Japanese secondary aluminium alloy market is forecasted to shrink in a medium-long term since automotive component and die casting makers tend to shift their productive sites to overseas. Daiki plans to enhance operations and sales in Southeast Asian countries.