News Room 2009 (The former Furukawa-Sky)

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Structural Reforms Planned for Sheet Rolling Business

June 11, 2009

Furukawa-Sky Aluminum Corp. will undertake structural reforms in its sheet rolling business with the aims of responding flexibly to changes in the economic environment and establishing a solid profit structure.

Outline

1. Objective and Content
Furukawa-Sky Aluminum Corp. has been striving to bolster its profit structure through optimal concentration of production. Major changes in the economic environment, however, have made it necessary to exercise further flexibility in managing its businesses.
To that end, the company will implement structural reforms in its sheet rolling business by reorganizing the production system with the aim of reconstructing its profit base.
2. Measures to be Implemented
1.Nikko Works
  1. Suspension of casting, hot rolling and cold rolling processes
  2. Transfer of above processes to other works (Fukui, Fukaya, Oyama)
  3. Continuation of operations involving specialized finishing processes Planned period: from June 2009 to March 2013
2.Color Aluminum Business
  1. Transfer of coating process of certain products from the Utsunomiya Works of Furukawa Color Aluminum Co., Ltd. to the Fukaya Works
  2. Increased efficiency in various operations by centralizing control over product manufacturing at the Fukaya Works Planned period: from June 2009 to March 2013
3. Targeted Effects
By restricting new investments and promoting rationalization, the company expects annual improvements of ¥3.0 billion following completion of the current plan.
4. Personnel Structure
Recognizing the importance of maintaining employment in the affected divisions, accommodations will be made through a Group-wide effort.
5. Utilization of Suspended Equipment and Land
Methods for utilization of suspended equipment and land will be broadly considered across the Furukawa-Sky Aluminum Group, and the company will report on cases requiring additional structural reform expenditures once the estimated costs have been calculated.