Japanese aluminium company UACJ announced that it is mulling an investment of US$488 million in the USA and the Kingdom of Thailand in order to increase its rolled aluminium capacity in the oversees facilities by 40 per cent. The company projects that the capex expansion will boost the offshore capacity to 700,000 tonnes roughly matching up to the domestic production capacity. Major improvements are planned for the Tri-Arrows Aluminum facility in Kentucky and Rayong Works in Thailand.
UACJ will add a casting line comprising casting equipment, a well furnace, a scrap-melting furnace, a scalper, heating furnace, a cold-rolling mill, a surface treatment and coating line, and slitter to the Rayong Works. Plans to build necessary assorted buildings are also there in place. These improvements costing around US$320 million will boost production capacity to 320,000 tonnes by June 2019. The estimated EBITDA between FY2017-21 is estimated to increase in US$120 million, UACJ expects.
Upgrades at Tri-Works will include a casting line, melting equipment for scrap aluminium, and a cold rolling mill. The total capex announced for the improvements is US$160 million. The casting mill will go on stream in July 2018 and cold rolling mill will begin operations in April 2019, stated, an official UACJ release. Once all the facilities start operating, UACJ expects to register an increased EBITDA if US$5 million betweem FY2017-21.
{googleAdsense}
UACJ is the world’s third largest rolled aluminium company and the only Japanese firm having significant footprints in the overseas market. However, even after the planned upgrades it will be still lagging behind Novelis, the world leader in rolled aluminium manufacturing, in terms of the total production capacity.
Responses
