Nippon Light Metal to Establish New Auto Parts Plant in China

Nippon Light Metal announced on Thursday its 100% subsidiary, Nikkeikin Aluminium Core Technology Corporation (Nikkeikin ACT), establishes the second factory in China in April 2008 to meet strong demand for aluminium parts from US and European automakers. The new factory will be located in Shanghai to manufacture aluminium extrusions for automotive parts. The commercial production will start in February 2009.The new factory will be established with capital investment of 10 million yuan (approximately 150 million yen), 90% shared by Nikkeikin ACT and 10% by Nikkeikin ACT’s another Chinese subsidiary in Shenzhen. Shanghai factory will start commercial operation with 2 manufacturing lines for sub roof rails initially. The manufacturing lines are scheduled to increase to 5 lines in 2011.Nikkeikin ACT’s Chinese first subsidiary produces and sells aluminium auto parts such as bumpers and sun roof rails in Shenzhen, which are supplied to Japanese automakers’ sites in South China. The business has expanded steadily and the users offered Nikkeikin ACT to supply aluminium auto parts in Center China. Shanghai subsidiary would meet the demand.Automobile production in China was 7.19 million cars in 2006, up by 25.9% from 2005. Aluminium auto parts demand is expected to increase much following the rapid auto production growth in China.