Ryobi to Start Al Die Casting Production in China and Mexico

Ryobi will start aluminium die casting production at new plants in China and Mexico to meet strong demand for automobiles. The plant in Dalian, China will start commercial production of aluminium die castings in December 2007 and aim annual sales of above 2 billion yen in fiscal 2008 ending March 2009, whose construction was finished in July 2006. The plant in Irapuato, Mexico will start operation in October 2008 and aim annual sales of above 4 billion yen in fiscal 2010.Dalian new plant will supply high-grade aluminium die castings to Shanghai General Motors. The construction of Mexican new plant finished in April 2007 with capital expenditure at 5.1 billion yen. Mexican plant will produce aluminium die castings for automotive transmissions.Ryobi’s existent plant in USA is enjoying increasing sales for Japanese automakers’ local sites. The sales for Japanese automakers are estimated to represent 18-19% within the total sales through fiscal 2007, which is expected to rise by 4-5 percentage points from fiscal 2006. Ryobi expects the sales would increase by 20% at USA plant during next 2-3 years thanks to the favorable demand for automobiles.