Nippon Light Metal Seeks New Growth in 4 Business Fields and Overseas

Mr. Takashi Ishiyama, Nippon Light Metal’s president and chief executive officer, attended a press conference on Tuesday and explained that Nippon Light Metal establishes new business structure along its new 3-year management plan after divestiture of Shin Nikkei. Nippon Light Metal targets annual net sales of 430 billion yen with net profit of 12 billion yen in fiscal 2012 ending in March 2013. The firm concentrates management resources into 4 business fields that are automobiles, electric components & electronic materials, telecommunications, and environment, safety & energy. The firm tries to raise the sales ratio of these 4 fields to 45% (189.5 billion yen) in fiscal 2012 from 27% (126.2 billion yen) in fiscal 2009.

At the same time, Nippon Light Metal plans to raise overseas sales rate to 19.4% in fiscal 2012 from 11.9% in fiscal 2009. The group will expand output capacity of back sheet and electrode ink for solar cells at Toyal Zhaoqing, Toyo Aluminium’s subsidiary in China. The group also plans to expand output capacity for sunroof rails at Nikkei (Shanghai) Body Parts, Nikkeikin Aluminium Core Technology’s subsidiary in China, as well as production capacity increase for aluminium plate at Nikkei Siam Aluminium in Thailand.

Nippon Light Metal seeks next offshore business growth during fiscal 2010-2012. The parent company examines construction of Nikkei MC Aluminium’s 3rd business site in Asia, Nikkeikin ACT’s 3rd business site in China, Nippon Fruehauf’s new site in China and Nikkei Panel System’s new site in Southeast Asia as well as expansion of Toyo Aluminium’s powder manufacturing lines.

Capital expenditure is planned at 20.3 billion yen for fiscal 2010, 24.3 billion yen for fiscal 2011 and 21.7 billion yen for fiscal 2012.