Nippon Light Metal May Establish Second Extrusion Plant in China

Nippon Light Metal aims to expand overseas sales along its mid-term management plan for fiscal 2007-2009 ending March 2010. Takashi Ishiyama, NLM’s executive vice president who is appointed as NLM’s next president, suggested the firm examines to establish a second plant in China to produce aluminium extrusions for automobiles within fiscal 2008 while the firm produces aluminium extrusions in Shenzhen, China.NLM opened Shenzhen plant in 2004. The firm may establish a second plant in the northern region in China. The demand is active for aluminium bumper reinforcement produced at Shenzhen plant. NLM also examines to increase Shenzhen’s output capacity. The firm has other visions to establish an aluminium extrusion plant in North America and an aluminium casting plant in Southeast Asia within fiscal 2007-2009. The firm will expand capital expenditure for the existent offshore plants as well.NLM aims to double its annual overseas sales to 80 billion yen in fiscal 2009 from 40 billion yen in fiscal 2006. NLM’s overseas sales ratio would up to 11% in fiscal 2009. The sales at offshore bases could increase to 54 billion yen in fiscal 2009, 2.7 times as much as fiscal 2006.