4-traders
Furukawa-Sky Aluminu : Furukawa-Sky to Build Aluminum Rolling Mill in Thailand
Edited by : AL CIRCLE
2 min read
Furukawa-Sky hereby announces its conclusion of an agreement to purchase a site within the Amata City Industrial Estate in Rayong Province in eastern Thailand and its decision to provide 100% of the investment to build an aluminum rolling mill on the site.
The objective for constructing the new plant is to manufacture and sell aluminum sheet materials-used in such items as beverage cans, automotive heat exchangers and electrical components-in the Southeast Asian market, which is expected to grow. The company will begin (Phase I) by providing raw materials from its plants in Japan, using cold-rolling machines lying idle after the discontinuation of upstream processing at its Nikko Plant to commence cold-rolling and later processes. Thereafter (Phase II), the Company plans to smoothly transition to integrated production beginning with the casting process and expand the plant's production capacity.
During Phase I, annual production capacity is expected to be around 60,000 tons, with plant construction costs of approximately ¥13.0 billion. Construction is scheduled to begin around March 2012, with operations beginning around January 2014.
Furukawa-Sky expects to fund the construction primarily using funds on hand, but may raise funds from financial institutions if necessary.
One of the priority policies stated in Furukawa-Sky's 2012 Medium-Term Plan is to "respond appropriately to growing overseas markets." Following its acquisition of shares in a U.S. manufacturer and supplier of rolled aluminum sheet (Tri-Arrows Aluminum Inc.) and thereby acquiring a base for manufacturing beverage can stock in North America, the Company aims to expand its production base in Southeast Asia. This will allow Furukawa-Sky to meet the demands of the rapidly growing and expanding Asian market. Combined with its existing production bases in Europe and China, the new facilities will enable Furukawa-Sky to further enhance its rolled aluminum sheet business in the global marketplace, thereby continuing to meet a variety of customer needs.
The objective for constructing the new plant is to manufacture and sell aluminum sheet materials-used in such items as beverage cans, automotive heat exchangers and electrical components-in the Southeast Asian market, which is expected to grow. The company will begin (Phase I) by providing raw materials from its plants in Japan, using cold-rolling machines lying idle after the discontinuation of upstream processing at its Nikko Plant to commence cold-rolling and later processes. Thereafter (Phase II), the Company plans to smoothly transition to integrated production beginning with the casting process and expand the plant's production capacity.
During Phase I, annual production capacity is expected to be around 60,000 tons, with plant construction costs of approximately ¥13.0 billion. Construction is scheduled to begin around March 2012, with operations beginning around January 2014.
Furukawa-Sky expects to fund the construction primarily using funds on hand, but may raise funds from financial institutions if necessary.
One of the priority policies stated in Furukawa-Sky's 2012 Medium-Term Plan is to "respond appropriately to growing overseas markets." Following its acquisition of shares in a U.S. manufacturer and supplier of rolled aluminum sheet (Tri-Arrows Aluminum Inc.) and thereby acquiring a base for manufacturing beverage can stock in North America, the Company aims to expand its production base in Southeast Asia. This will allow Furukawa-Sky to meet the demands of the rapidly growing and expanding Asian market. Combined with its existing production bases in Europe and China, the new facilities will enable Furukawa-Sky to further enhance its rolled aluminum sheet business in the global marketplace, thereby continuing to meet a variety of customer needs.
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