Furukawa-Sky Aluminum Agrees in Battery Foil JV in China

Furukawa-Sky Aluminum and its 100% subsidiary, Nippon Foil Mfg. announced on Friday they agreed with Guangdong Dongyangguang Aluminum, Chinese aluminium re-roller, to establish a joint venture business company in China. The JV company will cover development, production and sales of aluminium foil used for electrode material of lithium ion battery and capacitors.

Lithium ion battery is recently utilized in industrial fields as well as in electronic fields including mobile PCs and cellular phones. The demand is also expected to increase largely for electric vehicles. Furukawa-Sky Aluminum Group aims to follow the demand growth of aluminium foil in China.

The companies signed an agreement to examine the JV establishment on April 14th. They will start talks on the JV’s details including investment shares and dealing items.

Guangdong Dongyangguang Aluminum is the parent company of two Chinese aluminium re-rollers in which Furukawa-Sky Aluminum announced capital participation in October 2009. Guangdong Dongyangguang Aluminum produces high purity aluminum ingot, aluminium rolled products, electrolytic capacitors and air conditioner fin materials. The capital fund is 827 million yuan.

Furukawa-Sky Aluminum revealed the mid-term strategy in 2010 along which the firm plans to start aluminium foil production for automotive battery at overseas.