2025 New Year’s Message from the President

President Shinji Tanaka gave the following New Year’s message to employees of the UACJ Group on January 6, 2025:

I would like to wish each and everyone one of you a happy New Year. I hope you and your families had a relaxing holiday. For those of you who went to work during the holiday to handle things like installing, operating, and starting up equipment, I would like to express my sincere appreciation.

Now that 2025 has begun, I would like to look back on the previous year and talk about our outlook and objectives for this year.

Last year, the global economy continued to grow as inflation rates declined and international trade picked up. At the same time, however, conflicts and divisions in various regions of the world created major risks to our business activities. Here in Japan, the economy grew gradually but the impact was not widely felt.

In April last year, we launched our fourth mid-term management plan under the banner of creating earnings, building partnerships, and promoting the benefits of aluminum. We have specified four strategies for adding more value to our products—promote recycling, expand fabricated materials businesses, help stabilize supply chains in technologically advanced industries, and grow new businesses—and will aim to boost earnings in each of these areas.

Furthermore, we established the Extrusion & Metal Components Business Division and the Aerospace and Defense Materials Business Division, and set up an organizational framework for facilitating interdivisional cooperation. In the Foil business, we decided to cancel a planned merger of UACJ Foil Corporation with another company, but our forecast of rising demand for battery foil has not changed, so group-wide measures will be needed to boost rolling capacity. Meanwhile, as part of our efforts to develop new technologies and products, we made further progress in upgrading aluminum recycling equipment with the commencement of demonstration tests of a vertical, high-speed, twin-roll caster.

Next, I would like to talk about our outlook for 2025. The steady growth of the global economy is projected to continue, but it is highly unpredictable due to the potential for widening trade disputes. The Japanese economy is forecast to pick up moderately on the back of domestic demand, but many challenges remain, such as boosting productivity amid labor shortages, adding value to products and services, and adapting to the expected rise in financing costs.

For the UACJ Group to grow in this operating environment and realize its long-term management roadmap, UACJ Vision 2030, it must supply aluminum materials with even more added value than before. To create and increase new value while also strengthening the Group’s operations, we have set the following four objectives for 2025.

The first is to deepen our commitment to the basic principles of safety, compliance, and quality. We must always remember that safety is a priority in all operations, and actions are needed to prevent accidents. At the same time, we must comply with laws, regulations, customer agreements, and our own rules and codes of conduct. Finally, we should aim to ensure that customers are satisfied with and can depend on our products and services.

The second is to execute measures aimed at strengthening operations and improving our abilities to grow and create value, which are vital for realizing UACJ Vision 2030. They include stepping up recycling initiatives, an important strategy for the Group to help build a circular economy for aluminum. To be able to add value and offer new services, we will need to secure sources of raw materials and develop new products and technologies. Other measures include increasing automation to improve safety and productivity at manufacturing facilities, and boosting the productivity of back-office departments. We must also take steps to achieve our non-financial goals.

Our third objective is to execute measures for achieving the goals of the mid-term management plan and our plan for this fiscal year. Risks to the Company’s financial health are greater now than at the time of formulating the mid-term management plan. They include increases in capital expenditures, steeply rising aluminum prices, and higher amounts of working capital resulting from the yen’s depreciation. To secure enough investment funds, we must work to quickly generate earnings from newly established businesses. We will also continue to focus on maximizing cash flow and improving capital efficiency with a view to achieving our financial targets.

Finally, our fourth objective is to enhance the well-being of the Group’s employees. Toward this end, we will aim to increase employee engagement, promote individual growth, and improve workplace capabilities so that each member can actively contribute while maintaining good mental and physical health. We will also foster a corporate culture that fully accepts diversity, equality, and inclusion.

Once again, I would like to wish a happy New Year to all members of the UACJ Group. I sincerely hope that you and your families stay safe and healthy in 2025.