Sigma to Open Japanese Sales Office to Supply AD12.1 from Zhangzhou

Sigma Group, the world largest producer of secondary aluminium alloy headed in Taiwan, plans to establish a sales company in Japan as early as in 2011. The firm aims to cultivate Japanese market and to sell AD12.1 grade alloy produced at Zhangzhou Sigma, which is Sigma Group’s productive subsidiary in Zhangzhou, Fujian Province, China. The chairman and CEO of Sigma Group Tony Huang said the strategy to a reporter of Japan Metal Bulletin.

Sigma Group expects the secondary aluminium alloy sales to volume Japan will increase by 54% to 85,000 tonnes in 2010 from 2009. In 2009, Sigma Group’s products represented 43% of total secondary aluminium alloy import from China to Japan.

However, other Chinese secondary aluminium alloy makers are recently increasing their sales shares. Sigma’s export share to Japan is sharply lowering this year. The share was 47% in January but downed to 28% in October.

Sigma Group aims to recover and enlarge its sales share in Japanese market. Mr. Huang said the firm plans to supply Zhangzhou Sigma’s AD12.1 grade alloy at the price as cheap as Chinese major secondary aluminium alloy makers. Zhangzhou Sigma has supplied secondary aluminium alloy mainly to Chinese market so far. Sigma Group regards Zhangzhou Sigma as the second export base to Japanese market in and after 2011, following the existent export base, Shanghai Sigma.

Zhangzhou Sigma has output capacity at 15,000 tonnes per month. The plant’s operating rate maintains as low as 30% since Lehman Shock. Sigma has avoided order acceptance at cheap price in Zhangzhou though the demand is steady in China. The firm aims to increase Zhangzhou Sigma’s output to 10,000 tonnes per month toward the end of 2011 by aggressive export to Japan.