Osaka based major secondary aluminium alloy maker, Summit Showa Aluminum, suspends production of secondary aluminium alloy for die-casting and casting as well as production of RSI (re-melted aluminium can scrap ingot) at Shiga plant, Shiga Prefecture, Japan for approximately 2 weeks. The production has already been suspended since April 21. The firm will push forward the furnace maintenance in Shiga plant and apply for Employment Adjustment Subsidy. Demand for secondary aluminium alloy almost halved after Japan Earthquake though RSI production was full.
Shiga plant had produced secondary aluminium alloy for die-casting and casting at 2,800 tonnes per month and RSI at 1,200 tonnes per month before Japan Earthquake. After the earthquake, automakers and automotive component makers significantly reduced productions. As a result, Shiga plant’s output of the alloy for die-casting and casting dropped to 1,400 tonnes per month. The firm had already implemented temporary suspension or application for Employment Adjustment Subsidy at Ibaraki plant, Ibaraki Prefecture, and Chiba plant, Chiba Prefecture. Mr. Yoshihiko Suzuki, the president of Summit Showa Aluminum, explained secondary aluminium alloy sales are sharply decreasing not only in East Japan but in West Japan after the earthquake. He said the firm decides how long to suspend Shiga plant’s operation along the demand condition.Japan Steel Scrap Composite Prices (Sangyo Press)
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