UACJ and South Korea’s CHOIL Dissolve Business Partnership

UACJ Corporation (Headquarters: Chiyoda-ku, Tokyo; Representative Director & President: Miyuki Ishihara) and South Korea’s CHOIL ALUMINUM CO., LTD. (Headquarters: Daegu Metropolitan City; President: Youngho Lee; Capital: 34.8 billion won) have decided to dissolve their business partnership at the end of its term. The two companies entered the business partnership agreement, involving the manufacture and development of flat-rolled aluminum products using the continuous casting method, in October 2008.

The business partnership was initially formed to leverage CHOIL’s strengths in using the aluminum continuous casting method to enhance capabilities for automotive heat exchanger materials in the Japanese market and to reinforce the development of new products for the automotive and various other markets. Given that the Japanese market for automotive heat exchanger materials is changing and that the UACJ Group has its own continuous casting equipment, after reviewing the business partnership the companies have decided to dissolve the agreement. In line with the resolution of this business partnership, UACJ has sold its 5% holding of CHOIL’s common stock. Following the resolution of the business partnership agreement, UACJ and CHOIL will maintain positive relations and have agreed to continue conducting business involving flat-rolled aluminum products.

UACJ’s mid-term management plan for fiscal 2018 to fiscal 2020 defines “increasing capital efficiency (emphasis on ROIC)” as one of its major policies. Going forward, the Company will continue working to utilize management resources efficiently by strategically targeting and focusing on key businesses.