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Special Feature(August 2014)

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Special Feature: Developing a Global Supply Network

Against the backdrop of economic growth, in Asian markets demand for aluminum is growing across a wide range of fields. Given the increasingly stringent regulations on automobile fuel performance, such as the CAFE regulations, the accelerated adoption of lightweight aluminum is driving demand in the US market. UACJ is reinforcing its global supply network in an effort to respond to increased demand for aluminum in parts of the world such as these.

Increase in the Number of Employees Stationed Overseas, in Line with Our Development of a Global Supply Network

Increase in the Number of Employees Stationed Overseas, in Line with Our Development of a Global Supply Structure

Thailand UACJ (Thailand) Co., Ltd.

Operations Commence at Core Factory for Asia, Mainly Supplying
Beverage Can Stock and Materials for Automotive Heat Exchangers

In 2012, we began construction in Thailand of a new plant to serve as our core factory for Asia. The Phase I line of this plant, which handles processes from cold rolling through to finishing, is now complete. In January 2014, this plant began supplying beverage can stock and materials for automotive heat exchangers.

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Key Person 1 for Global Development

A Key Base in the Global Supply Network

The Phase 1 line of UACJ (Thailand) Co., Ltd., commenced operation in January 2014, handling processes from cold rolling onward. We are now progressing steadily with Phase 2 construction, which targets fully-integrated manufacturing from casting onward. Production is scheduled to begin in fiscal 2016, bringing total annual production capacity to 180,000 tons. We believe this expansion is timely, as it allows the UACJ Group to quickly establish a production and supply base for Asia, and strengthens links with production bases in other parts of the world, making it a key element of the Group’s overall global strategy.

Akinori Yamaguchi President, UACJ (Thailand) Co., Ltd. (concurrently Executive Officer, UACJ Corporation)

Akinori Yamaguchi
President, UACJ (Thailand) Co., Ltd. (concurrently Executive Officer, UACJ Corporation)

United States Tri-Arrows Aluminum Inc.

Decision on Joint Business to Produce
Body-in-White Aluminum Body Panels for the Automotive Industry

In the United States, where increasingly stringent regulations on fuel economy are accelerating the shift toward the use of aluminum in automotive panels, in May 2015 UACJ concluded an agreement with Europe’s Constellium N.V. to pursue the joint production of body-in-white (BiW) aluminum body panels for the automotive industry. The cold-rolled coils will be supplied by the Logan mill of Logan Aluminum Inc., which produces beverage can stock and is jointly owned by Tri-Arrows Aluminum Inc.—as subsidiary of UACJ.

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Key Person 2 for Global Development

Building an Optimal Production Network to Meet Market Needs

Increasingly stringent fuel economy standards, through the CAFE regulations, are driving the trend toward lighter-weight automobiles. As a result, we anticipate explosive growth in the market for aluminum materials. To meet this demand, UACJ and Constellium N.V. will set up a joint venture manufacturing and sales company for providing body-in-white (BiW) aluminum body panels to the automotive industry. We plan to supply the cold-rolled coil used to manufacture the BiW panels through the Logan mill of Logan Aluminum Inc., which is jointly owned by Tri-Arrows Aluminum Inc.—a subsidiary of UACJ. We are working to build a network capable of efficiently handling the new production of BiW panels for the automotive industry at a location that previously focused on can stock.

Patrick Franc: President and CEO, Tri-Arrows Aluminum Inc. (concurrently Executive Officer, UACJ Corporation)

Patrick Franc
President and CEO, Tri-Arrows Aluminum Inc. (concurrently Executive Officer, UACJ Corporation)

Malaysia UACJ Foil Malaysia Sdn. Bhd.

Acquisition of a Company to Manufacture and Sell Aluminum Foil for
Beverage Containers and Food Packaging

In January 2014, UACJ Foil Corporation acquired a Malaysian company that manufactures and sells aluminum foil, converting this company to a subsidiary. Through this business, we aim to respond to growing Southeast Asian demand for foil used in beverage containers and food packaging.

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South Korea UPIA Co., Ltd.

Capital Participation in Sales Company for Thick Aluminum Plate and Precision-machined Products Used in
Liquid-crystal and Semiconductor Manufacturing Equipment

In September 2013, UACJ entered into a capital and management participation agreement with a South Korean aluminum processing and sales company. This move is aimed at reinforcing our sales network for the handling the thick aluminum plate and precision-machined products used in liquid-crystal and semiconductor manufacturing equipment, for which demand is expected to expand.

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