Furukawa-Sky Optimizes Domestic Operation while Expands Offshore Business

Furukawa-Sky Aluminum Corp. announced its new mid-term management plan for fiscal 2010-2012 ending in March 2013 on Thursday. The firm aims 220 billion yen of consolidated net sales with 9 billion yen of consolidated net profit in fiscal 2012 by productive optimization between Fukui plant and Fukaya plant as well as reinforcement of overseas business.

As to domestic operations of flat aluminium products, Furukawa-Sky will terminate Nikko plant’s upstream operations from casting to cold rolling by the end of fiscal 2012. Fukui plant will cover high-purity aluminium slabs for hard disc substrates while Fukaya plant will cover automotive heat exchangers in order to improve productive efficiency. As to extruded aluminium products, the firm will review the business structures including alliances with other re-rollers.

At overseas, the firm plans to reinforce the manufacturing operations of heat exchanger materials, printing boards and capacitor foils in China, Indonesia and UK. In Thailand, the firm plans to start aluminium slitting business. In Vietnam, the firm tries to keep the global top share of compressor wheels at above 50%. As a result, Furukawa-Sky’s overseas revenue is expected to increase to 53 billion yen from estimated 29 billion yen in fiscal 2009.

The non-consolidated sales volume is targeted at 447,000 tonnes in fiscal 2012, increasing from estimated 386,000 tonnes in fiscal 2009. The consolidated net sales are aimed to increase by 37 billion yen and the operating profit by 14.9 billion yen compared with fiscal 2009. The firm tries to decrease interest-bearing debt by 16 billion yen to 57 billion yen in fiscal 2012 from fiscal 2009 while improve the capital to asset rate by 8 points to 35%.