Nippon Light Metal to Double Thai Al Cold Rolling Capacity

Nippon Light Metal announced on Tuesday the wholly owned subsidiary, Nikkei Siam Aluminium of Thailand adds new cold rolling mill for around 1.4 billion yen to increase the flat products output capacity from annual 17,500 tonnes to 38,000 tonnes in April 2014. The firm tries to meet growing demand when transplants of Japanese manufacturers increase the local procurement.

The buyers try to increase the local procurement including purchase from Nikkei Siam Aluminium under economy growth in Association of Southeast Asian Nations and expanded Free Trade Agreement with various countries. Nikkei Siam Aluminium decided the expansion when the firm cannot meet request from the buyers to increase the supply volume.

Nikkei Siam Aluminium started the history in 1971 as Reynolds Aluminium (Thailand) and Reynolds Aluminium renamed into Alcan Siam in 1983. Nippon Light Metal purchased 70% share in Alcan Siam in 1992. Alcan Siam renamed into Nikkei Siam Aluminium in 2003 when Nippon Light Metal controlled 100% of the Thai company. The Thai company is sole aluminium rolling maker with hot rolling and cold rolling mills in Southeast Asia. The firm makes aluminium flat products, coil, foil and automotive parts. The official output capacity is annual 20,000 tonnes for flat products and 7,000 tonnes for foil.

Japanese aluminium rolling makers try to increase the presence in emerging countries for next growth. Nippon Light Metal tries to expand the business in Southeast Asia further while the firm already has operations in Thailand and China.