Showa Denko’ Aluminium Unit to Streamline for Profitability

Showa Denko’s aluminium unit tries to restructure the business including withdrawal from commodity grade extrusion and job cut under very slow demand. The executive officer Shinichi Shiraishi who is top of aluminium unit tries to improve the profitability through the restructure and targets making money even at 70% of operation rate.

Mr. Shiraishi said the unit impairs 1.5 billion yen of assets in second half of 2009 for optimum production system. He said the unit reduces around 400 jobs including employees and temporary staff mainly in extrusion, construction materials and heat sink.

Mr. Shiraishi said the aluminium unit is breakeven for second half of 2009 while the business can make money except for extrusion business. He said the demand is strong in China and Southeast Asia more than expected.

Mr. Shiraishi said the unit tries to expand the offshore supply base for office automation related products when the users expand the production in China. He said the firm studies additional line for brazed heat sink in China while the unit improves global supply network through supply from plants with reserve capacity. He said the unit expands the heat sink parts capacity at cost competitive plant in Thailand to supply for other areas.