Special FeatureAutomotive Materials Business
Taking Advantage of Group Value
UACJ Today
Producing Synergies through Aggressive
Investment in Growth Markets and the USA
Establishing a Foundation for the Automotive Materials Business through Effective Investment Based on TAA
UACJ started full-fledged entry into the US market, the world’s largest market for aluminum cans, in August 2011, before integration began. This move started with the acquisition of present-day Tri-Arrows Aluminum Inc. (TAA), which holds 60% share of the Logan Mill, the world's largest aluminum rolling mill. That event marked a huge step for UACJ towards becoming a global manufacturer of can stock.
North America is currently attracting a great deal of attention as a new growth market for the aluminum industry. The driver of demand there is the automotive industry. In the major automotive markets around the world, environmental regulations have become increasingly stringent on automobiles in recent years. In the USA, where regulations are more likely to drive incentives for lighter vehicles, a shift towards aluminum has been progressing steadily for body sheet and spaceframes, with the aim of reducing the weight of vehicle bodies. The demand for automotive aluminum products is projected to reach over 1 million tons in 2020 and 1.2 to 1.3 million tons in 2025.
In order to ensure that UACJ will capitalize on this once-in-a-lifetime business opportunity, in 2014 the company entered a joint venture with a European company to manufacture and sell automotive body sheet, thereby establishing Constellium-ACJ ABS LLC (CUA). Furthermore, UACJ implemented an additional investment in the Logan Mill of TAA—hitherto a specialist factory for can stock—to establish a network capable of supplying CUA with base materials for automotive body sheet. Moreover, in order to bolster its automotive aluminum structural materials and parts business, UACJ welcomed North America's leading company in the field to the Group in 2016, launching it as UACJ Automotive Whitehall Industries, Inc. (UWH). This move is expected to produce synergies such as CUA potentially benefitting from the introduction of UWH's extensive clientele.
UACJ has established a network that enables the company to move forward with its business for a wide range of automotive materials in a short space of time, doing so by carrying out effective investment based on the existing facilities of TAA. We will continue to improve our quality, cost and delivery performance, utilizing synergies created within the UACJ Group, and strengthening and expanding our automotive aluminum business in the North American market.
Global Operation of Automotive Materials Business by Leveraging Expertise and Presence in North America
The trend towards lighter vehicles as a result of tighter regulations has been steadily gathering momentum beyond the US market, in Europe, Japan, and Asia as well. UACJ is planning to strengthen and expand its businesses of automotive body sheet and structural materials/parts operations in Japan, Thailand and other regions in the future, while taking advantage of its business model and presence among customers in the USA. With this vision in mind, UACJ has already started actively promoting the exchange of personnel and joint development with CUA and UWH. In particular, UWH has abundant experience in the parts and precision-machined components business, having undertaken designing and manufacturing automotive aluminium structural materials internally and delivering directly to automotive manufacturers. With such know-how added to its armory, the UACJ Group automotive materials business is set for further advancement.
Conducting Regional Activities through Interaction with Charity Organizations
As it does worldwide, the UACJ Group attaches importance to good relationships with local communities and is as committed to this cause in the USA, one of the key regions in the Group’s overseas operations. At TAA, we have formulated a new vision to promote volunteer activities for local communities by the employees with the aim of becoming a cherished member of the community. Under this vision, TAA has designated five charity organizations that have connections with Louisville, Kentucky as its partners. The company has made various donations, with many of its employees participating in activities hosted by the organizations. In addition, the activities are reported in an internal magazine to ensure that more employees are encouraged to take part. TAA continues its efforts to build even better relationships with all stakeholders, including staff, local communities and the industry.
