Showa Aluminum Can Corporation (SAC), a consolidated subsidiary of Showa Denko, announced that it will cease production of aluminium can plant in June 2020. The company will stop a part of its production lines in Oyama and Hikone in order to respond to changes in the domestic market environment.
“In the domestic market for aluminium cans, the demand for cans for alcoholic beverages continues to be strong due to an increase in the demand for alcoholic beverages other than beer and beer-like beverages, though the demand for beer/beer-like beverages continues declining. However, the demand for aluminium cans for non-alcoholic beverages is expected to decrease significantly due to a shift from aluminium cans to PET bottles. As a result, the total demand for aluminium cans in Japan is expected to continue stagnant into the future,” the company said on its website.
SAC operates three aluminium cans plant in Oyama, Hikone and Omuta. The company will stop production line for non-alcoholic beverages, and streamline production capacity to be about 60% of the current level.
The company’s domestic aluminium can business will focus its management resources mainly on cans production for alcoholic beverages, aiming to stabilize its revenue base. It will promote further development of ink-jet printing technologies suitable for the production of multiple models and smaller lots, search for new use of aluminium cans, and introduction of formulas linked to aluminium-metal prices to calculate and determine sales prices of aluminium cans.
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