Toyo Seikan Targets 20-30% Offshore Sales Rate in 10 Years

Japanese largest can maker, Toyo Seikan Kaisha targets to increase offshore sales rate to 20-30% of consolidated sales in around 10 years compared with target of more than 10% for fiscal 2012 started in April. The firm plans expansion of packaging business mainly in China and Southeastern Asia when offshore rivals already secured more than 50% sales from international business.

The president Shunji Kaneko said at a presentation for result of fiscal 2011 on Thursday the firm tries to expand offshore packaging business for the growth. The firm acquired US major can making machine manufacturer, Stolle Machinery in fiscal 2011. The acquisition will add around US$ 400 million of sales to consolidated sales of Toyo Seikan Kaisha for fiscal 2012. The two can making subsidiaries will resume operation in Rojana of Thailand from Thai flood damage. Toyo Seikan Kaisha plans to increase production capacity of can plants in Thailand and Vietnam. In China, the firm will open beverage filling plant.

Mr. Kaneko indicated the firm would use more flat steel, aluminium and other materials from offshore suppliers. He said offshore suppliers cannot meet required quality from Japanese users but the firm would increase the offshore materials depending on the quality.

The firm’s offshore transplants purchase material of drawing and ironing aluminium can from Alcoa and Novelis. The offshore transplants purchase more than 50% of aluminium coil from other suppliers than Japanese suppliers.