News Room 2012 (The former Furukawa-Sky)
Phase II Investment in New Aluminum Rolling Mill in Thailand and Increased Investment in Thai Subsidiary
September 27, 2012
At a Board of Directors meeting convened today, Furukawa-Sky decided on its Phase II investment in an aluminum rolling mill that is under construction at a site within the Amata City Industrial Estate in Rayong Province in Eastern Thailand.
On November 4, 2011, the Company announced plans to construct an aluminum rolling mill in Thailand. Phase II investment will allow integrated production, beginning with casting. By enabling post-cold-rolling production, this investment will reduce costs further and achieve higher levels of quality than was possible through the Phase I investment. Through this investment, the Company will gain the cost competitiveness to compete in global markets, and we will continue working to create a structure for providing the highest-quality products on a global basis.
The main facility targeted by this investment is a hot rolling line, which is scheduled to commence operations in March 2015. Including Phase I, investment is expected to total more than ¥50.0 billion and result in annual production capacity of approximately 180,000 tons. Furukawa-Sky expects to fund most of the construction internally, but may raise funds from financial institutions if necessary.
One of the priority policies stated in our 2012 Medium-Term Plan is to "respond appropriately to growing overseas markets."
We now plan to expand our production base in Southeast Asia to meet the increasing demands of this rapidly growing market. Combined with existing bases in North America, Europe and China, the new facilities will enable Furukawa-Sky to expand its rolled aluminum sheet operations and meet customer needs globally.
At the same time, Furukawa-Sky has decided to increase its investment in Furukawa-Sky Aluminum (THAILAND) Co., Ltd., the Company’s wholly owned subsidiary in Thailand in charge of conducting these rolled aluminum sheet operations, by 2,440 million baht (approximately ¥6.45 billion).
| Location | : | Within the Amata City Industrial Estate, Rayong Province, Thailand |
|---|---|---|
| Production capacity | : | Approximately 180,000 tons/year |
| Construction cost | : | In excess of approximately ¥50.0 billion (Phases I and II) |
| Start of construction | : | Scheduled for February 2013 (Phase II) |
| Start of operations | : | Scheduled for March 2015 (Phase II) |
| Business | : | Manufacture and sale of rolled aluminum sheet |
| Location | : | Within the Rojana Industrial Park, Ayutthaya Province, Thailand |
|---|---|---|
| Representative | : | Hironori Tsuchiya (Director of Furukawa-Sky and General Manager, Rolled Products Div.) |
| Capitalization | : | THB1.21 billion (approximately ¥3.02 billion) (Before current increase in investment) |
| Business | : | Manufacture, processing and sale of rolled aluminum sheet |
| Established | : | February 4, 2010 |
- Note:
- The impact on operating performance for the current fiscal year is slight.