News Room 2009 (The former Furukawa-Sky)

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Capital Participation Agreement Concluded with Chinese Aluminum Rolling Companies

July 9, 2009

Furukawa-Sky Aluminum Corp. signed a Letter of Intent on July 7, 2009, with Ruyuan Dongyangguang Plain Foil Co., Ltd. (Registered capital: RMB 250 million; Legal representative: Hongwei Zhang) and Shaoguan Yangzhiguang Aluminum Foil Co., Ltd. (Registered capital: RMB 496 million; Legal representative: Jian Quan Lu), two Chinese aluminum rolling companies controlled by aluminum enterprise Guangdong Dongyangguang Aluminum., Ltd. (Registered capital: RMB 827 million; Legal representative: Jing Ping Guo), regarding capital participation with Mitsui & Co. Ltd. of up to a 45% combined stake in each of the two companies, respectively.

By participating in management and providing technical assistance to the two companies, Furukawa-Sky seeks to meet the rapidly growing demand for rolled aluminum products in China as well as to expand sales and cultivate new customers locally, such as Japanese companies, in cooperation with its partners.

The framework of the new company after the capital participation, including the capital ratio, will be determined through concrete discussions between the parties toward concluding a share transfer agreement and other related contracts.

Guangdong Dongyangguang Aluminum., Ltd is a core subsidiary of Shenzhen Dongyangguang Shiye Development Co., Ltd. responsible for the aluminum business, which constitutes one of the three core businesses (aluminum, energy and pharmaceuticals) of the parent company.
The parent is a conglomerate engaged in the pharmaceutical business in China and has secured bauxite rights in its aluminum business while also owning a coal thermal power plant in Hubei Province.