Daiki’s Secondary Al Alloy Production Recovers in Southeast Asia

Secondary aluminium alloy production is recovering at Daiki Aluminium Industry’s subsidiaries in Southeast Asia. The current production is 4,800 tonnes per month at Daiki Aluminium Industry (Thailand) and 1,800 tonnes per month at Daiki Aluminium Industry (Malaysia). Thai’s operation is expected to reach 5,000 tonnes per month within 2-3 months. Malaysia’s operating rate is recovering to 90% this month.

Output capacity of Daiki Aluminium Industry (Thailand) is 7,000 tonnes per month. The order receipt volume from die casting makers and other users has gradually increased month by month along the demand recovery for cars and motorcycles in Thailand and other Southeast countries.

The operation of Daiki Aluminium Industry (Malaysia) had stayed at around 1,500 tonnes per month since the beginning of this year. The order receipt volume is slightly increasing in March and the operation is approaching to the full capacity operation, according to an official of Daiki Aluminium Industry.

These subsidiaries in Thailand and Malaysia posted the annual operating losses in 2008 and 2009. Low sales volume in January-June 2009 seems to have impacted the profitability. Their profitability is expected to turn up in 2010 thanks to the demand and price rebound.