Sumitomo Light Metals Targets 15B Yen Recurring Profit in F2012

Sumitomo Light Metal Industries announced the 4th 3-year management plan starting in April 2010 “SUMIKEI VISION 2012″on Thursday, along which the firm aims the consolidated net sales at 260 billion yen, the consolidated operating profit at 19 billion yen, the consolidated recurring profit at 15 billion yen and ROA at 7% in fiscal 2012 ending in March 2013. The 3-year capital expenditure including strategic investment will total 25 billion yen.

The firm will follow the market growth related to light weight vehicles, new energy or environment in next 3 years of fiscal 2010-2012. At the same time, the firm will strengthen offshore businesses when the customers are shifting their productive bases to overseas and the domestic demand levels off.

The firm will optimize the businesses of aluminium fabricated products, components and the material for aluminium extrusions as planned during fiscal 2010-2012. Meanwhile, the firm will try to strengthen the copper fabricating business. For the next growth, the firm targets no.1 positions in several new fields such as light weight cars as well as enhancing the businesses at overseas.

On the same day, Sumitomo Light Metal Industries announced to establish a new productive subsidiary in Ayutthaya, Thailand. The subsidiary will start operation in April 2011 with an annual capacity at 3,600 tonnes. The plant will supply aluminium alloy tubes and extrusions for automotive heat exchangers. The investment will total approximately 1.1 billion yen. This is the 2nd offshore aluminium extruding plant for Sumitomo Light Metal Industries following Sumikei Czech.