New Mid-term Management Plan
April 8, 2010
The Furukawa-Sky Group has formulated a new Mid-term Management Plan for the three-year period ending in fiscal 2013 to clarify and accomplish our mid-term business vision. An outline of the plan is provided below.
1. FY2013 Mid-term Management Plan–Basic Principles and Mid-term Business Vision
Domestic demand for aluminum rolled products dropped to a 20-year low in fiscal 2010 due to the economic recession that set in toward the end of 2009, and although it appears the worst is behind us in terms of the fundamentals, projected demand trends leave little room for optimism.
To effectively respond to these harsh circumstances, Furukawa-Sky has already launched Group-wide efforts to strengthen its corporate constitution, including the structural reform of its sheet rolling business and realignment of subsidiaries, along with a series of measures for recovering profitability.
At the same time, we are making progress in enhancing profitability through aggressive actions in global markets with high growth potential, such as Asia, centered on China, and Europe.
In response to the major changes taking place in our business environment, the Furukawa-Sky Group has formulated a new Mid-term Management Plan for the three-year period ending in fiscal 2013 toward our goal of achieving renewed growth. The basic principles of the plan are provided below.
First step toward renewed growth and a stronger business foundation for operational expansion
- Domestic business: Promote structural reform in existing businesses and develop a stronger business foundation
- Overseas business: Effectively respond to overseas growth markets
- New products: Develop business for high-growth products and next-generation products
We are committed to steadily implementing this Mid-term Management Plan and will further strengthen and expand our management foundation and operational scope toward an ideal future, based on our mid- to long-term business vision of becoming an attractive company that ranks No. 1 in Asia in every respect–profitability, financial position, technological prowess and human resources.
2. Outline of the New Mid-term Management Plan
Based on the above-stated principles, we will pursue the following strategies:
(1) Domestic Business Strategy
a. Promote structural reform in our businesses
[Sheet rolling and foil business]
- Discontinue upstream processes (casting to cold rolling) and restructure the Nikko Plant
- Restructure the colored aluminum business (transfer production to the Fukaya Plant, downsize production at Furukawa Color Aluminum Co., Ltd.)
- Demonstrate the effects of transforming Nippon Foil Mfg. Co., Ltd. into a wholly owned subsidiary
- Explore development of an optimal production system and review product segment
- Explore fundamental measures including alliances to enhance productivity
b. Develop a stronger business foundation
- Realize the optimal concentration of production at the Fukui and Fukaya plants in response to discontinuing upstream processes at the Nikko Plant
- Strengthen financial position through priority investments in optimization of the number of workers and streamlining, along with selective capital investment
- Thoroughly strengthen cost and quality competitiveness of domestic production bases
(2) Global Business Strategy
[Sheet rolling business]
- Strengthen existing overseas investment bases for automotive heat exchangers, lithographic sheets, etc.
- China, Europe : Increase production capacity and product variety
- Thailand : Advance into slitter business
- Improve cost competitiveness in global beverage can markets (China and other Asian countries)
[Extrusion and processing business]
- Expand production volume and product variety at existing bases for automotive heat exchangers
- Indonesia : Reinforce facility to expand product variety
- China : Expand sales to local manufacturers; broaden sales from high-end to middle markets
- Improve response to global niche markets such as electronic parts processing
- Consolidate No. 1 position in global market share for compressor wheels used in turbochargers
- Vietnam : Strengthen production system centered on Vietnam; develop counter-measures against rival products
- Establish and organize local business bases
- China, Europe : Establish business bases for enhanced market response and consolidate a marketing framework
(3) New Product Development Strategy
- Promote development of next-generation products in the automotive, power storage and solar energy areas based on the keywords: environment, energy and IT (recycling and weight saving, clean, high-functionality and high-efficiency)
3. Numerical Targets (Consolidated basis)
|Fiscal 2010 Outlook||Fiscal 2013 Projection||Increase/Decrease (FY 2013 against FY 2010)|
|Sales Volume (Non-consolidated)||386||447||+61|