Daiki Aluminium Industry Invests 6 Million Yen for Southeast Asian Factories

Daiki Aluminium Industry, Japanese largest secondary aluminium alloy maker, carries out 610 million yen of capex to raise secondary aluminium alloy output capacity or to install new facilities for metal scrap and substantial material processing at its three subsidiaries in Thailand, Malaysia and Indonesia.

Thai subsidiary, Daiki Aluminium Industry (Thailand) will introduce a pre-process facility for shredder mix metal and a processing facility for dross with total 280 million yen capex. The pre-processing machine will treat shredder mix metal, the main material for secondary aluminium alloy, at 1,000 tonnes per month. The dross processing machine will be utilized to recycle dross for in-house consumption and sales to third parties as deoxidizing agent for steel making.

Indonesian subsidiary whose construction finished in July 2011, PT Daiki Aluminium Industry Indonesia will install a pre-processing facility for low grade scrap with 250 million yen capex. Malaysian subsidiary, Daiki Aluminium Industry (Malaysia) will introduce an additional melting furnace and raise the output capacity by 200-300 tonnes to 2,400-2,500 tonnes per month. The capex is 80 million yen. The new melting facility can save energy consumption as well as reuse exhausted gas.

Monthly output at Daiki Aluminium Industry (Thailand) is expected to recover to 5,300 tonnes in February against the output capacity at 8,000 tonnes. The production temporarily decreased to below 4,000 tonnes after flood in Thailand. Daiki Aluminium Industry (Malaysia) schedules furnace repair this month. The monthly output will decrease to 1,800 tonnes against the capacity at 2,200 tonnes. Monthly output at PT Daiki Aluminium Industry Indonesia is expected to reach 1,000 tonnes in March against the capacity at 2,500 tonnes.