Nikkei MC Aluminium Signs Technical Aid Pact to China Alloy Maker

Nikkei MC Aluminium, which is joint venture of Nippon Light Metal and Mitsubishi Corporation, announced on Thursday the firm signed technical support agreement with Liaoning based secondary alloyed aluminium maker, LSM. Nikkei MC Aluminium eyes capital participation in LSM to construct the second phase project after LSM’s first phase succeeds the commercial operation.

LSM with 30 million yuan of capital now constructs the plant with annual 120,000 tonnes of output capacity. The firm starts the first phase in the year to make 60,000 tonnes of products, mainly for AD12.1 grade products. The second phase is to additional 60,000 tonnes of products.

Nikkei MC Aluminium started to find contract manufacturing partner in China since last year. The Chinese subsidiary in Kunshan operates at full capacity to meet growing demand but the plant has no room for major expansion. Nikkei MC Aluminium tries to secure additional capacity in China and started negotiation with LSM a year earlier.

Nikkei MC Aluminium sends technical support members to LSM while Nikkei MC Aluminium’s Kunshan subsidiary accepts LSM operators for training. Nikkei MC Aluminium supports LSM to establish high level quality management system while Nikkei MC Aluminium keeps supporting LSM’s operation for commercial operation.

Nikkei MC Aluminium eyes potential contract AD12.1 production to LSM in future while Nikkei MC Aluminium’s Kunshan subsidiary now makes AD12.1 grade. With the contract production, Nikkei MC Aluminium can secure reserve capacity at Kunshan plant to increase production of high valued products including alloy for castings.