Nippon Light Metal, Mitsubishi Corp. to Combine Aluminium Alloy Business

Nippon Light Metal and Mitsubishi Corporation announced on Wednesday they combine the aluminium alloy business for castings and die-castings on April 1, 2007. Mitsubishi Corp.’s wholly owned subsidiary, M.C. Aluminium will succeed the business from Nippon Light Metal after Nippon Light Metal separates the aluminium alloy production unit. M.C. Aluminium will change the name to Nikkei MC Aluminium, which Nippon Light Metal controls 55% with 45% share by Mitsubishi Corp. The new firm will be consolidated subsidiary of Nippon Light Metal after Nippon Light Metal subscribes new share of M.C. Aluminium to increase the interests to more than half. The new firm has annual 310,000 tonnes of output capacity with 5 domestic plants and 4 offshore subsidiaries. The firm with 80 billion yen of annual sales will be domestic no.2 aluminium alloy maker after Daiki Aluminium Industry. Nippon Light Metal and Mitsubishi Corp. plan to sign the agreement on December 15. They will announce the detail on the day. Japanese aluminium alloy makers are in fierce price competition while they have to expand supply system in offshore market to meet the demand from the major users of automakers, which expand offshore operations. Nippon Light Metal and Mitsubishi Corp. seek synergy by combining Nippon Light Metal’s development power and production technology and Mitsubishi Corp. and M.C. Aluminium’s sales network at home and abroad through the integration.