Nippon Shindo Revises New Plant Schedule

Nippon Shindo Company announced on Friday the firm secured land with 45,438 square meters in Sakai works of Nippon Steel in Osaka for new plant for 1.992 billion yen. The firm revised the new plant schedule to launch in January 2011 half year behind original schedule. The firm secures more than 600 million yen through allocation of 2.7 million new shares to Marubeni Corporation and Sambo Copper Alloy. Nippon Shindo planned to start new plant building works in October 2008 starting operation in April 2010. The firm now plans to start the works in June 2009 starting operation in January 2011. The firm also revised the budget upward to total 13 billion yen including 11 billion yen for building and equipment, which is around 1 billion yen higher than original budget. The firm tries to expand the partnership with Marubeni and Sambo Copper Alloy through the additional financing. Marubeni is the largest materials supplier for Nippon Shindo while Nippon Shindo and Sambo Copper Alloy entered into comprehensive partnership including bras wire production sharing in 2003. Marubeni will have 15.66% share in Nippon Shindo after the equity increase while San-Etsu Metals will reduce the share to 13.63% from current 15.39%.