Nikkei MC Aluminium Expands Jiangsu Plant Capacity by 25%

Nikkei MC Aluminium, Japanese major secondary aluminium alloy maker jointly invested by Nippon Light Metal and Mitsubishi Corporation, will expand output capacity of its subsidiary NMA Kun Shan (NMAK) in Jiangsu, China, by 25% to 2,500 tonnes per month. NMAK will introduce a 15-tonne melting furnace and a continuous casting line with 60 million yen capital expenditure. The new facilities will start operation in April 2011.

NMAK presently operates its two 20-tonne furnaces fully. High value products, such as custom alloy used for automotive engine components, accounts for 70% in 7,000 tonnes of monthly output. The rest 30% involves low grade products such as AD12.1 grade ingot used as die casting material.

Chinese car market has steadily grown and the demand for secondary aluminium alloy has strongly increased. NMAK’s order receipts keep favorable from die casting makers and automotive component makers. The new 15-tonne melting furnace will be dedicated to produce casting alloys from turning scrap.

NMAK recently concluded a technical support contract with Chinese secondary aluminium alloy maker, LSM in Liaoning. NMAK’s site will have no space for additional capacity expansion after introduction of new facilities. In future, NMAK may transfer low grade products to LSM and raise the output rate of high value products.