Nikkei MC Aluminum Examines Business Shrinkage in Thailand

Nikkei MC Aluminum, Japanese major secondary aluminium alloy maker, seems considering business shrinkage at a subsidiary in Thailand, Nikkei MC Aluminum (Thailand). The firm may almost halve the production at the subsidiary. Demand for secondary aluminium alloy has dropped down in Thailand and neighboring countries since autumn 2008. The subsidiary is suffered from worse profitability under low operation.

Output capacity of Nikkei MC Aluminum (Thailand) is 2,100-2,200 tonnes per month. The subsidiary’s order receipt halved along the demand decline in and after November 2008. The production dropped to around 1,000 tonnes in January. Demand recovery is delayed in Thailand and the export for Southeast Asian countries maintains weak. The subsidiary’s operation rate is supposed to stay low at present.

A concerned source explained Nikkei MC Aluminum would continue secondary aluminium alloy production in the country at a certain volume despite of the size down.