News Room 2012 (The former Furukawa-Sky)

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Restart of Thailand Coil Center Operations

February 7, 2012

Furukawa-Sky Aluminum (Thailand) Co., Ltd., a wholly-owned subsidiary of Furukawa-Sky, suffered major damage in the large-scale flooding in Thailand last year. Furukawa-Sky has elected to continue with our coil center business in Thailand by transferring equipment from the current coil center location to our new rolled aluminum sheet plant, which is to be constructed at the Amata City Industrial Estate in Rayong Province (as announced on November 4, 2011).

The Amata City Industrial Estate in Rayong is at no risk of flooding, in addition to which moving the coil center to the same facility as the rolled aluminum sheet operation will optimize our manufacturing structure and supply chain by reducing logistics costs and cutting lead times. This can enable us to offer an even higher level of service to our clients. We plan to restart production at the new plant in early 2014 once the requisite procedures, such as acquisition of permits from the relevant authorities, have been completed.

We request our clients' understanding during the period preceding the restart of operations, and we shall meet our supply obligations through substitute production by Furukawa-Sky and the Furukawa-Sky Group companies.

As is the case with the coil center operations, management of the new rolled aluminum products plant will be conducted by the existing parent company, Furukawa-Sky Aluminum (Thailand) Co., Ltd. Investment was increased in December of last year by THB1.05 billion (approximately ¥2.62 billion), with 100% of the investment made by Furukawa-Sky. This enabled execution as planned of the purchase agreement for the business site within the Amata City Industrial Estate in Rayong Province. Intensive construction of the new facility on the approximately 350,000 square meter site is planned to commence in March of this year.

* Impact on this year's results will be minor.