Furukawa-Sky Aluminum announced on Monday the firm established aluminium processing joint venture with the subsidiary, Nikkei Kakoh in Wuxi, China. The new company will start aluminium processing in April 2012 to meet growing demand for inverter of heavy electric machinery’s controlling equipment and heat exchanger of railway car. The company tries to post profit in 2013. The company raises the operation rate to full capacity as soon as possible and post 200 million yen of operating profit with 1.6 billion yen of annual sales.
Furukawa-Sky Aluminum controls 66.7% of the Chinese company with 300 million yen of capital. Osaka based subsidiary, Nikkei Kakoh has 33.3% shares of the company. The company leases a plant in Wuxi to launch the operation soon. The new Chinese company gets a part of mother material from Furukawa-Sky Aluminum’s aluminium rolling affiliate in Guangdong and extrusion making subsidiary in Tianjin. The new company could utilize Furukawa-Sky Aluminum’s sales company in Shanghai to develop the market.Japan Steel Scrap Composite Prices (Sangyo Press)
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