Dowa to Improve Profit Balance for 5 Core Units

Dowa Holdings targets to gain annual recurring profit of each 10 billion yen from its 5 core business units including nonferrous metal smelting, environmental management & recycling and metal processing. The firm sets annual recurring profit target at total 50 billion yen for the next mid-term management plan for fiscal 2009-2011 ending March 2012. Dowa aims to build a stable profit base free from metal price fluctuation and to revise the record profit in fiscal 2011 following fiscal 2006.

In the nonferrous metal business unit, the firm brings a recycling furnace at Kosaka, Akita, Japan into stable operation as soon as possible. The firm invested 14 billion yen for the new furnace construction. However, the completion delayed by 6 months from originally planned and the operating rate stays still low since starting in April 2008. Dowa will finish facility refinement within this year and expects profit improvement by 3.5 billion yen toward fiscal 2011.

In the environmental management & recycling business unit, construction of a new incinerator in Chiba, Japan delays by 18 months from originally planned, for which Dowa invested 8 billon yen. The firm expects 700 million yen profit improvement by completion of the construction within 2008 and reinforcement of scrap collection.

As to metal processing business unit, Dowa estimates 1.8 billion yen profit improvement by enlargement of coils at Dowa Metal, a subsidiary in Shizuoka, Japan. Enlarged coils are smoothly operating in fiscal 2008 and Dowa will upsize other coils for brass manufacturing facilities in fiscal 2009. The firm also plans to improve operating rate of a new plating line.