Nippon Light Metal Plans Aggressive Capex toward F2010

Nippon Light Metal announced on Wednesday its new mid-term management plan for fiscal 2007-2009 ending March 2010 to carry out capital expenditure of total 90 billion yen during 3 years. The firm will expand 3-year capex by 50% compared with fiscal 2004-2006 to exceed depreciation widely. The firm targets consolidated net sales at 725 billion yen for fiscal 2009, up by 19.8% from estimated sales in fiscal 2006, operating profit at 39 billion yen, up by 32.2%, recurring profit at 32 billion yen, up by 39.1%, and net profit at 18 billion yen, up by 50%.Nippon Light Metal focuses the resources on the 3 strategic units including automobile, electronics & information technology and environment, safety & energy. The firm aims to increase the sales ratio related to the 3 business fields from current 26% to 36% toward fiscal 2009.The firm plans to establish new production and sales bases in Asia and USA. Nikkeikin Aluminium Core Technology, the subsidiary of Nippon Light Metal, plans to establish a new base in USA to deal with automobile related products, which would become the first auto-related base in USA for Nikkeikin ACT. Nikkeikin ACT also examines to establish its second base in China. Nippon Light Metal Group evaluates establishment of a new branch office in Shanghai, an aluminium forging and casting plant in Thailand, an aluminium hydroxide plant in Vietnam and an aluminium panel business base in Asia.Nippon Light Metal aims to double offshore sales to 80 billion yen in fiscal 2009 from 40 billion yen in fiscal 2006. The overseas sales ratio would increase to 11% from 7%.