Asahi Pretec to Construct Metal Recycling Plant in Korea

Asahi Pretec Corp., Japanese precious metals and rare metals recycler, announced a new mid-term management plan starting April 2009 on Tuesday. Along the plan, the firm will construct a recycling plant near Soul City of South Korea to deal electronics and dental materials. The plant will be operated under Asahi Pretec’s existent sales subsidiary in Soul. This seems the first case that Japanese company opens a dental material recycling plant in the country. Asahi Pretec has already acquired the plant site. The investment is scheduled at around 1 billion yen.

Asahi Pretec targets consolidated net sales at 100 billion yen, consolidated operating profit at 7 billion yen and dividend on equity at 5% in the final fiscal year of its new mid-term plan by March 2012. The firm estimates consolidated net sales at 125 billion yen with operating loss at 1.5 billion yen and recurring loss at 1.5 billion yen for fiscal 2008 ending March 2009. The sales and profits are impacted by price drop down of precious metals and rare metals.

The main targets of the new mid-term plan is to extend metal recycling business, to enhance environmental business and continue M&A, and to improve operating efficiency and gain stable profits by strengthening hedge function.