Ahresty Aggressively Expands Overseas Die Casting Business

Japanese major die casing maker, Ahresty examines to establish new offshore business sites including the second die casting plant in China, explained Mr. Arata Takahashi, president of Ahresty, at an interview with Japan Metal Bulletin. The firm aims to raise the overseas sales rate to 40-50% toward fiscal 2016 ending in March 2017 from current 20%.

Ahresty recovered the 3-month operating profit in October-December 2009. Mr. Takahashi said the firm could lower the breakeven point by the cost down efforts. The firm downsized the employee number and reorganized the business sites in Japan and at overseas.

Mr. Takahashi explained Ahresty’s domestic order receipt volume is recovering to 77-78% level in January-March 2010 compared with in 2007 and expected to keep the current level for April-June.

At overseas, Guangzhou Ahresty Casting (GAC) in China enjoys full operations of 21 die casting machines. He said additional 4 large-size die casting machines will be introduced in GAC in fiscal 2010 starting in April. Ahresty expects GAC’s sales volume doubles and the sales value reaches 9 billion yen in fiscal 2010 from fiscal 2009. Ahresty also plans to increase die casting machines at the plants in India and Mexico.

Mr. Takahashi said the firm considers about the establishment of a satellite office in Mexico to design metal molds as well as the second die casting plant in China. He explained the firm set a new business unit to prepare for establishment and feasibility study of Chinese next plant.

As to another subsidiary of Ahresty Wilmington Corporation in USA, Mr. Takahashi said, the order receipt volume is currently 75-80% compared with the peak in 2007. The annual revenue in North America is estimated at 13.5-14 billion yen for 2010 as the total of Ahresty Mexicana and Ahresty Wilmington.