Daiki Aluminium Cuts Southeast Asian Output with Slow Demand

Daiki Aluminium Industry reduces the production rate at the plants in Southeast Asia when local transplants of Japanese automakers and motorcycle makers reduce the production since late April due to limited parts supply from Japan. Daiki Aluminium Industry (Thailand) and Daiki Aluminium Industry (Malaysia) reduce the operating rate while the plants kept high level production through early April.

Daiki Aluminium Industry (Thailand) with monthly 7,000 tonnes of output capacity supplies secondary alloyed aluminium to transplants of Japanese automotive parts makers and die-casting makers in Thailand and other Southeast Asian countries. The plant operated at full capacity in March to serve the growing market. However, the production was just more than 6,000 tonnes in April due to slower production by the users.

Daiki Aluminium Industry (Malaysia) also expects lower order receipt. The plant reduced the production in March due to expansion work for the furnace while the production was 1,600 tonnes in March. The plant completed the expansion to increase the monthly output capacity by around 30% to 2,400 tonnes in mid-April. However, the production was around 1,600 tonnes in April due to the slower demand.

The plants in Thailand and Malaysia cannot make final production plan in May due to uncertainty. The plants could reduce the output in May when the automotive and motorcycle users’ operation wouldn’t recover immediately.