Sumitomo Corp., Showa Denko to Marge Aluminium Alloy Units

Sumitomo Corporation and Showa Denko announced on Tuesday they agreed to integrate their alloyed aluminium business in July. Sumitomo Corp.’s subsidiary, Summit Aluminum integrates the business of Showa Denko’s subsidiary, Showa Aluminum Alloy while Summit Aluminum allocates of new shares to Showa Denko. Sumitomo Corp. controls 65.76% of the new company, Summit Showa Aluminum with 33.33% interests by Showa Denko and with 0.91% by private shareholders. Mr. Masaru Aoyagi, who is president of Summit Aluminum, moves in president of the new firm. Showa Denko dissolves Showa Aluminum Alloy. Showa Denko said the firm decided the integration to strengthen the alloyed aluminium marketing mainly for automotive parts and to improve efficiency of the production. The new firm is expected to sell annual 180,000 tonnes of products with 40 billion yen of sales. Summit Aluminum produces 130,000 tonnes and Show Aluminum Alloy produces 90,000 tonnes. Showa Denko closes no.1 plant in Chiba, which produces 60,000 tonnes of aluminium alloy for die-castings, and allocates a part of production to Summit Aluminum. Showa Aluminum Alloy’s operation focuses on alloyed aluminium ingot. The new firm becomes no.2 alloyed aluminium maker with 14-15% of domestic market share after the leader of Daiki Aluminium Industry. Showa Denko said the firm can share corporate culture with Summit Aluminum when many alloyed aluminium makers are managed by private owners. They keep talking to share offshore business strategy.