Sankiblast Establishes Magnesium Die Casting JV in Thailand

Osaka based manufacturer of magnesium finished products and aluminium castings, Sankiblast, establishes a joint company with Eastern Polymer Industry (EPI), Thai largest resin manufacturer, to manufacture magnesium die casts in Ayutthaya, Thailand. The joint company named Sanki Eastern (SE) will start operation in March 2012 and supply magnesium finished parts for digital cameras to Thai plants of Sony and Nikon.

Sankiblast concluded a memorandum of understanding with EPI in early August. The joint company’s capital fund is 50 million baht (approximately 128 million yen), 70% invested by Sankiblast and 30% by EPI. EPI is the largest resin manufacturer in Thailand that posted consolidated annual revenue at approximately 30 billion yen in 2010.

SE will be established inside Saha Rattana Nakorn Industrial Estate, Ayutthaya Province. EPI will construct a new plant with 2,500-square-meter floor space on a 5,000-square-meter site inside EPI’s existent subsidiary plant. SE will rent the factory and start operation with 60 employees.

Four die casting machines will be exported from Japan to the joint factory, those which are two 350-tonne mold clamping machines, one 150-tonne machine and an 85-tonne machine. Additionally 20 CNC machines and one chemical conversion treatment line will be installed. Installment of the all equipments will complete by the end of February 2012. The total capex is projected at approximately 300 million yen.

SE is scheduled to supply magnesium finished parts to Thai plants of Japanese digital steel camera makers. The first phase production is planned at 100,000 parts per month against the output capacity at 200,000 parts per month. SE targets to raise the production to full capacity operation within a year along the customers’ productive expansion.

In 2014, Sankiblast plans to launch LED (light emitting diode) production at SE as well. Sankiblast started production of magnesium die casting covers for LEDs at its domestic subsidiary, TOSEI, in April 2011. Sankiblast aims to add more values to the products by LED production in Thailand. SE may also enter production of magnesium die casting automotive components such as handles and front panels, supplying to European automakers.