A message from the Chairman

To All Employees of UACJ Group Companies

As of today, Furukawa-Sky Aluminum Corporation and Sumitomo Light Metal Industries, Ltd. have merged to form UACJ. On behalf of the board of directors, I wish to express our sincere gratitude for you past loyalty and efforts, and assure you that the establishment of UACJ is a move to provide a brighter future for all.

The business environment in global markets is undergoing dramatic change at an unprecedented pace, and expectations are high that it will grow increasing more turbulent in the future. It is amidst such an environment that UACJ has been formed, strengthening the foundation of all business operations to ensure that we meet and surpass customer expectations. In doing so, we will continue to capture market share and pursue expansion of our product lineup into growth industries such as environmental systems and energy where demand is expected to continue to rise in the future. We also plan to expand business operations, placing a focus on Southeast Asia and other emerging markets. Ultimately, our aim becoming an aluminum industry leader in a competitive global market.

To achieve this goal requires the combined strengths of each and every employee, as well as the close collaboration of affiliate companies. Accordingly, it has been deemed the following four issues require immediate action:

1) Improving cost competitiveness to a level that enables UACJ to maintain highly competitive market positioning in both Japan and global markets.

2) Strengthening the synergies created by combining the technologies, development knowledge and quality assurance expertise of our former companies, and thereby improving our ability to meet and exceed customers' expectations

3) Creating a proficient network for supplying products of the highest quality to markets anywhere in the world.

4) Exhibiting the characteristic Japanese work ethic of all employees being actively involved on-site and always looking for ways to make improvements.

Active involvement on-site is essential for manufacturers. But on-site does not pertain only to the production floor. From research and development to sales and back office operations, all areas of the business have their own on-site challenges. As an employee, please don't hastily use impractical ideas, but rather focus on implementing practical on-site applications that contribute to getting the work done. It's important to visit actual sites, personally see and understand the products/equipment, and fully understand the surrounding conditions and environment. This will lead us to developing and producing what our customers and global markets need.

The most pressing issue for UACJ at this point in time is unity. We are a single, stronger, more vibrant company following the merger. We are now poised to advance and to show the world those synergies discussed early on; one example is continuing the plans for vertical startup of the Thailand rolling plant.

During the time leading up to the merger, I repeatedly expressed to members of both companies the importance of being fair and having respect and trust in all that we do, as well as how to judge various criteria based on what is best for the newly formed company. Though having been nurtured in different environments, we are now colleagues in the same company working together to achieve the same goals. Of course, there will be times that everything doesn't go according to plan and problems arise. But if each of you reminds yourself of these principles for achieving actual unity, issues that may arise will be resolved by decisions that are agreeable by all.

As I mentioned earlier, our unity is of vital importance, as it's closely tied to utilizing the synergies we have achieved early on and the successful vertical startup of the Thailand factory. For now, I will leave these two issues for President Okada to explain in further detail.

Combining the strengths and talents of the employees from our former companies, UACJ is aiming not only at becoming an aluminum industry leader in a competitive global market, but also a company where each employee grows personally by witnessing the results of his/her efforts and feeling that they have contributed to the company's success.

I look forward to the wonderful opportunities that await all of us at UACJ as we serve our customers and society in the coming years.

Shigenori Yamauchi
Chairman and CEO