Ahresty to Raise Overseas Sales Rate of Die Casting to 50% in F2014

Mr. Arata Takahashi, president of Ahresty, Japanese major die casting maker, revealed at a press conference in Tokyo on Monday the company aims to raise the overseas sales rate of die casting products to 40% in fiscal 2012 ending in March 2013 and to 50% in fiscal 2014. Ahresty Group tries to follow the demand growth for die casting products in emerging countries including China, India and Mexico.

Ahresty’s annual sales of die casting products increased by 30% to 93.2 billion yen in fiscal 2010 compared with the sales in fiscal 2009. The overseas sales expanded by 70% to 27.6 billion yen while the domestic sales increased by 18% to 65.6 billion yen. The overseas sales rate upped to 30% in fiscal 2010 from 23% in fiscal 2009.

The firm forecasts the annual sales of die casting products at higher than 100 billion yen for fiscal 2011. In volume, the overseas sales would represent almost half of the total sales. Ahresty accelerates establishment and expansion of new offshore business sites to enhance overseas sales.

Ahresty plans to start operation of Anhui plant, the second production base for die casting in China, in July 2011. In India, the fourth-phase expansion works have progressed at Ahresty India, the productive subsidiary, to complete in September 2011. Ahresty India’s factory floor will widen to 11,494 square meters.

Ahresty posted full-year consolidated operating profit at 3.765 billion yen in fiscal 2010, which expanded by 6 times year-on-year. Mr. Takahashi explained the domestic profit and the overseas profit were almost same in fiscal 2010 while profitability is already higher at overseas than in Japan. Mr. Takahashi added financial and operative impacts of Japan Earthquake would be limited. He suggested the demand trend would not change in a mid-long term, the demand gradually decreases in Japan and increases at overseas.