Japan Nonferrous Metals Players to Grow in Asia, Emerging Markets

Japanese major companies in nonferrous metals industry announced new mid-term management plan for next growth after financial crisis. Their key strategy is offshore business. They try to improve the profitability by following growing demand in emerging countries including China and Asia. They try to utilize the technical advantage on their Asian rivals while the Japanese players brush up the technology and products.

Nippon Light Metal announced on Friday the firm targets 9.1% of return on capital employed (ROCE) in fiscal 2012 under the new 3-year plan. The firm tries to develop new products and technology along with the business growth in Chin and Southeast Asia. The firm targets 20 billion yen of consolidated recurring profit with 430 billion yen of sales in fiscal 2012 compared with 2.7 billion yen of profit with 460.7 billion yen of sales in fiscal 2009.

Japanese largest antimony trioxide maker, Nihon Seiko announced on Friday the firm targets 1 billion yen of consolidated operating profit in fiscal 2012 compared with 321 million yen in fiscal 2009 under the new 3-year plan. The firm tries to improve the profitability through development of higher performance products and Chinese joint venture to serve Asian users.

Japanese metal valve major, Kitz Corporation announced on Friday the firm targets 10 billion yen of consolidated operation profit with 135.7 billion yen of sales in fiscal 2012 compared with 6.9 billion yen of profit with 96.5 billion yen of sales in fiscal 2009. The firm expands the offshore business to 29% of total sales from 21% in fiscal 2009. The firm targets 20 billion yen of operating profit with 250 billion yen of sales in fiscal 2020 through continuous expansion of offshore business toward 50% of the total sales.

Japanese major die-casting maker, Ahresty targets 4% of operating profit at 100 billion yen of sales in fiscal 2012 under the new 3-year plan. The operating profit rate is 5.7 times of fiscal 2009 and the sales target is 32% higher than fiscal 2009 level. The firm increases the offshore sales rate to 35% from current just more than 25% by following higher demand in China and Mexico.