Daiki Renovates Melting Furnace for RSI in Shirakawa Plant

Japanese largest secondary aluminium alloy maker, Daiki Aluminium Industry increases output capacity of a melting furnace for RSI (re-melted aluminium can scrap ingot) at Shirakawa plant in Fukushima Prefecture, Japan. The output capacity will be raised by 50% to 3,000 tonnes per month with 80 million yen capital expenditure.

Daiki renovates an old melting furnace for RSI in Shirakawa plant. The melting capacity will be raised to 35 tonnes from present 30 tonnes while utilizing existing burners and surrounding facilities. The renovation will start at the end of December 2010, when aluminium can scrap generation decreases in winter, and complete in mid February 2011.

Mr. Takaaki Yamamoto, Daiki’s president explained the firm expands Shirakawa plant’s RSI output capacity to help Kameyama plant in Mie Prefecture, Japan. Daiki produces RSI at Kameyama plant and Shirakawa plant. Kameyama plant’s capacity becomes slightly short in summer when RSI orders increases in demand season.

Mr. Yamamoto said Daiki continues RSI production by utilizing hedging function though the business profitability is currently worse. UBC (used beverage can) cost recently stays high due to severe procuring competition among secondary aluminium alloy makers. UBC is main material for RSI as well as secondary aluminium alloy ingot and deoxidizing agent. High material cost impacts secondary aluminium alloy makers’ profitability.