Sumitomo Light Metal Industries Restructures Al Extrusion Business

Sumitomo Light Metal Industries announced on Wednesday the firm stops the aluminium extrusion operation at Chiba plant in March 2010. The firm also separates aluminium extrusion sales unit and Nagoya extrusion plant into sales force and production company in April 2010.

The firm expects the restructuring results in annual 4.5 billion yen of better profit. The firm shifts the extrusion production from Chiba plant to group companies’ plant in Gunma and Aichi.

The Chiba plant has monthly 1,800 tonnes of production capacity with 260 of employees. The firm decided to stop the operation under very slow demand for motorcycle and automobile.

The firm also decided to issue 58 million shares as at 95 yen per share to raise 5.432 billion yen allocating to group companies including Sumitomo Corporation, Sumitomo Mitsui Banking Corporation and Sumitomo Metal Mining.

The firm announced to revise the profit outlook for the year ending March 2010 downward to 5.2 billion yen of consolidated net loss from 2.5 billion yen of profit originally due to 6 billion yen of special loss due to restructuring of aluminium extrusion business.