YKK AP to Raise Aluminium Construction Materials Price by 10-13%

President Tadahiro Yoshida of YKK AP said on Thursday the firm will increase the selling price by averaged 10% for aluminium housing materials and by averaged 13% for aluminium building materials effective on April 1 to cover higher cost of aluminium ingot and other materials. Mr. Yoshida also said the firm will increase the price of slide fastener by averaged 5% to cover higher cost of copper alloy caused by surging copper ingot. The firm tried to reduce cost and to add more value on the products by launching new products to cover the higher cost of raw materials. However, the firm decided to hike the selling price when the cost cutting effort is getting no more gain. Mr. Yoshida said the firm asks the users to absorb a part of the higher cost, not all. The firm increases the selling prices by revising the discount rate for the official price of the housing materials and by increasing the official price of building materials. Other Japanese aluminium sash makers increase the selling prices including Sankyo-Tateyama Holdings, Shin Nikkei and Fujisash. The firm tries to establish business model for Chinese construction materials, enter into US housing market and shift from sash maker to window maker in fiscal 2006 starting April. The firm expends 22.452 billion yen for the construction materials business for the year. The subsidiary in Suzhou of China builds aluminium window plant starting operation in October. The firm also builds inspection center at Kurobe plant in Toyama in September. Mr. Yoshida held press conference to explain the estimated of the results and the mid-term business plan on Thursday.