Nikkei MC Aluminium Eyes Offshore Production Bases

Nikkei MC Aluminium, which is secondary aluminium alloy making joint venture of Nippon Light Metal and Mitsubishi Corporation, tries to accelerate the global strategy. Nikkei MC Aluminium realizes offshore production base in 2-3 years in equity participation in alloy makers in China and Southeast Asia or new own plant building. The firm targets to increase the offshore profit rate to 50% of the consolidated recurring profit by 2014.

The firm already started preliminary talks with Chinese alloy makers for potential cooperation. The firm tries to find potential OEM partner for commodity products in China when the firm’s Chinese plant, Nikkei MC Aluminum (Kunshan) keeps full capacity operation but has limited room for expansion. Nikkei MC Aluminium eyes purchasing AD12.1 and alloys from Chinese makers to supply for Japanese buyers.

The firm also eyes potential new plants in emerging countries including Thailand, Indonesia, Vietnam and India.

The firm also operates at full capacity for Nikkei MC Aluminum (Thailand) and Nikkei MC Aluminum America of USA. The firm sees US demand also recovers when automobile sales is at annualized 11-11.5 million units level recently while Thai demand keeps strong.