2019 New Year’s Message

On behalf of UACJ’s management, it is my pleasure to wish all members and stakeholders of the UACJ Group a safe and happy New Year.

I would like to take the opportunity of the New Year to address everyone in the UACJ Group. For five years following UACJ’s establishment on October 1, 2013, the Company and all of its subsidiaries have been working together to make the UACJ Group a major global aluminum manufacturer. After closely examining that five-year history and envisioning our future direction, we announced a set of management policies in May of last year under our second three-year mid-term management plan, effective from fiscal 2018.

The aluminum industry has been undergoing dramatic changes over the past five years, particularly rapid growth in demand for automotive aluminum as automakers shift toward lighter-weight cars and electric vehicles. UACJ proactively planned and executed a number of strategic investments in response to these trends, starting with the optimization of its production network in Japan as means to reinforce the Group’s footing in the industry. That included boosting production of automotive body sheet at Fukui Works by installing new heat treatment and finishing equipment. In the United States, we increased production capacity of Tri-Arrows Aluminum’s Logan Mill and expanded the Group’s facilities in the precision-machined components business. In Asia, we raised production capacity of aluminum rolling mills in China, and carried out the third phase of investment in UACJ (Thailand), equipping its Rayong Works for fully integrated product manufacturing. UACJ (Thailand) has already realized the fruits of these investments, as it posted record-high results for monthly production output and sales volume this past November. Meanwhile, to drive research and development at the Group’s newly expanded operations outside Japan, we have recently established R&D centers in both the U.S. and Thailand.

UACJ has also been carrying out investments aimed at ensuring growth in the future. These investments were used to fully upgrade aluminum extrusion facilities at UACJ Extrusion Nagoya Corporation in Japan and at UACJ Automotive Whitehall Industries in the U.S, and to boost production capacity of lithium-ion battery foil manufactured by Guangdong Dongyangguang Aluminum, UACJ’s joint-venture in China. We have also developed corrosion-resistant copper tubes (under the brand name DANT) and taken steps to increase productivity for this new product.

In December last year, we decided to terminate our joint-venture partnership with Constellium N.V. Many people were involved in this business over numerous years, and I want to express my appreciation to all of them. We will continue to explore ways for re-establishing an automotive body sheet business in the North American market, so I hope we can work together on such a project in the future.

Looking ahead, I would like everyone to work as a team toward accomplishing the following directives in 2019.

1. Step up efforts to ensure compliance
   As members of a manufacturing enterprise, we must give extra attention to fully complying with laws, regulations, and our own internal rules and directions related to health and safety, the environment, and quality, while also meeting related conditions and specifications set by our customers.
2. Pay close attention to profitability
   It is essential for us to achieving an optimal balance between offering good value to customers, securing an appropriate amount of profits, and minimizing costs.
3. Strive to increase market share
   Let’s work to expand the businesses we operate now and maximize the Group’s market share for the products we currently supply.
4. Cultivate new businesses
   I want us to explore the possibilities of novel business models for new lines of business and products targeting new markets. We should consider the potential scope of each new business and market position we can attain, and how to go beyond those limits.
5. Make our workplaces more sustainable and rewarding for employees
   We are now at the stage of implementing a variety of initiatives across the Group, such as workplace reforms, improvements of operational efficiency, digitalization, and human resources training, with a view to make our organizations and systems more independent, autonomous, effective, and sustainable going forward. This year, I also want us to revamp our CSR systems by newly incorporating risk management.
6. Steadily carry out strategic investments
   In accordance with our management plans, I want ongoing investments in businesses and facilities to be conducted smoothly so we can generate returns on those investments in the future.

Once again, I would like to wish a happy New Year to all members of the UACJ Group and our partners around the world. I sincerely hope that you and your families have a safe and healthy holiday.

Miyuki Ishihara
Representative Director & President