Toyo Seikan Accelerates Investment for Overseas New Businesses

Toyo Seikan Kaisha, Japanese largest metal can maker, plans to increase consolidated net sales of start-up ventures to 30 billion yen in fiscal 2017 ending in March 2018, including food business, environment business and metal substrate business for solar battery. The firm had launched new businesses such as energy business and container business with RFID tag until fiscal 2009. The firm tries to enter growing application fields by utilization of the group companies’ technologies and marketing powers for various materials such as can, glass and surface treating of steel sheet.

Mr. Toshiharu Kaneko, president of Toyo Seikan, explained at a press conference on Tuesday the firm plans to establish 1 or 2 offshore subsidiaries mainly in China by the end of fiscal 2012. The firm follows Chinese expanding demand for high quality cans and containers. The firm plans to increase the overseas sales to 53 billion yen in fiscal 2012, 2.1 times of fiscal 2009, except for the effect of new subsidiaries. The firm will invest 30-40 billion yen for overseas businesses by fiscal 2012 including M&A.

In Japan, Toyo Seikan plans to reorganize plants and introduce more automatic and effective facilities. The firm tries to reduce productive costs by 10 billion yen or more until fiscal 2012. In fiscal 2010, the firm prospects non-consolidated sales of beverage containers to decrease by 0.7% to 224.5 billion yen from fiscal 2009 while the sales volume to increase by 5% to 400 million cans.