Showa Denko to Invest 12 Billion Yen for Aluminium Unit in 2006

Showa Denko plans to increase capital investment for the aluminium business unit by 20% to 12 billion yen in 2006 from 2005. The firm would invest 1.5 billion yen to renew melting and casting furnaces at Oyama plant in Tochigi Prefecture, Japan and 1.2 billion yen to introduce another refining line for high-grade aluminium foil at Sakai plant in Osaka Prefecture.There are 3 melting and casting furnaces at Oyama plant at present, 2 of which have 30 tonnes of casting capacity and the other 10 tonnes. Showa Denko plans to renew 2 furnaces within 2006 and the other in 2007. Each casting capacity of new 3 furnaces will become 15 tonnes. However, the productivity will be improved and the total casting capacity would not decrease so much at Oyama plant.Showa Denko plans to introduce another refining line for high-grade aluminium foil at Sakai plant and the output capacity would expand from 1,000 tonnes to 1,500 tonnes per month. The firm regards high-grade aluminium foil for capacitors as one of the core business along its new mid-term management plan. The firm aims to strengthen production and sales of high value added products along the management plan.