News Room 2011 (The former Furukawa-Sky)

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Furukawa Sky to Establish Aluminum Processing Company in China

December 5, 2011

On December 1, Furukawa-Sky and its subsidiary, Nikkei Kakoh (president: Norio Maeda; headquarters: Osaka), set up a company in the Xishan Economic Technological Development Zone at Wuxi in China's Jiangsu Province to manufacture and sell processed aluminum products.

China is expected to experience rapid growth in demand for large, precision inverters for power electrical control equipment and processed aluminum products (heat sinks) for railcar heat exchangers. We have set up the new company to meet local production needs in China, as well as to meet demand for heat-related components for automobiles throughout Asia.

By combining our strengths in the development of heat-related parts that use Furukawa-Sky materials, an organization for selling processed aluminum products, and Nikkei Kakoh's expertise in aluminum processing technologies such as brazing, welding and equipment processing, we aim to provide high-quality aluminum products to meet the needs of this rapidly growing market.

By leasing a building in the Xishan Economic Technological Development Zone, we expect to have the new company up and running quickly. Manufacturing and sales are scheduled to begin around April 2012.

We plan to source some rolled products from Ruyuan Dong Yang Guang Fine Foil Co., Ltd. (President: Jingping Guo, headquarters: Guangdong Province, China; ownership: 25%), extruded products from Furukawa-Sky Aluminum (Tianjin) Corp. (president: Akifumi Tagaya; headquarters: Tianjin, China; ownership: 100%) and involve Furukawa-Sky Aluminum (Shanghai) Corp. (President: Kenji Tsurubori; headquarters: Shanghai, China; ownership: 100%) in sales. This network will strengthen our supply chain in China spanning raw materials through to processing, enabling us to respond swiftly to customers' needs.

We expect the new company to move into the black within two years of its establishment, in 2013. Once the new company is fully operational, we anticipate annual sales of ¥1.6 billion and operating income of around ¥200 million.

Overview of the New Company
Name : Furukawa-Sky (Wuxi) Aluminum Products Co., Ltd.
Location : No. 3 Factory Building (Fuyo Science and Industrial Park) Block 18, Xishan Economic Technological Development Zone, Wuxi, Jiangsu
President : Akifumi Tagaya (General Manager, Extrusion and Components Division)
Capital : ¥300 million (as of December 31, 2012)
Ownership : Furukawa-Sky 66.7%, Nikkei Kakoh 33.3%
Established : December 1, 2011
Start of operations : Scheduled for April 2012
Business : Manufacture and sale of processed aluminum products
Annual sales : Approximately ¥1.6 billion (when fully operational)
Overview of Nikkei Kakoh Co., Ltd.
Location : 3-8-39 Tagawa, Yodogawa-ku, Osaka
President : Norio Maeda
Capital : ¥195 million (as of September 30, 2011)
Ownership : Furukawa-Sky 89.7%; others 10.3%
Established : December 30, 1942
Business : Manufacture and sale of processed aluminum products
Sales : ¥3.6 billion (fiscal year ended March 31, 2011)
Factories : Osaka Headquarters Factory, Sendai Factory, Hiroshima Factory