SHINSHO Corp to Expand Overseas Businesses

Nonferrous metals department of SHINSHO Corporation, the trading house of Kobe Steel Group, posted favorable accounts for the first half of fiscal 2006 ending March 2007, who’s operating profit increased by 82% to 1.5 billion yen for 1H from the same period of fiscal 2005. Yuji Nakayasu, senior managing executive officer and chief director of nonferrous metals, told the next growth strategy of the firm to Japan Metal Bulletin.Mr. Nakayasu said SHINSHO Corp would concentrate on the increase of overseas sales in fiscal 2007 and control product lineup along the offshore sales condition. He said the firm aimed to expand both copper and aluminium businesses at overseas. He expected the aluminium coil center in Suzhou Region, China could gain profits in its second operating year and cancel cumulative loss in the third year, which posts loss in the first year due to depreciation.Mr. Nakayasu explained SHINSHO Corp had improved its financial statements and became able to carry out the next growth strategy including the business expansion for China. He insisted SHINSHO Corp should utilize its offshore coil centers and cover broader demand fields than Kobe Steel as a trading house affiliated with the maker, while the parent tends to deliver the products more directly to the users such for aluminium can material and automotive parts. He expected synergism with SHINSHO Non-ferrous Metals Corporation, the affiliated coil center in Japan.