Nikkei MC Aluminum Downsizes Domestic Operation by 33%

Nikkei MC Aluminum, Japanese major secondary aluminium alloy maker invested by Nippon Light Metal, plans to downsize domestic operations by 33% to 10,000 tonnes per month from current 15,000 tonnes toward January 2010. Nikkei MC Aluminum optimizes domestic production along Japanese stagnant market in order to improve profitability. Meanwhile, the firm continues to hold productive facilities such as melting furnaces and casting machines. Consequently the firm will be able to meet 13,000-tonne orders per month at maximum despite of optimization.

Productive operation will be downsized by 15% to 1,700 tonnes per month at Tochigi plant in Tochigi Prefecture and by 41% to 1,000 tonnes per month at Togura plant in Nagano Prefecture. Koda plant in Aichi Prefecture will be downsized by 25% to 3,000 tonnes per month while Mie plant in Mie Prefecture will shrink by 5% to 3,800 tonnes per month. Operation of Asaba plant in Shizuoka Prefecture will be minimized by 87% to 500 tonnes per month.

Nikkei MC Aluminum will advance staff relocations while won’t employ new staffs in place of retired employees. Demand for secondary aluminium alloy has recovered gradually since spring 2009 but alloy makers are concerned their operating rate couldn’t exceed 70% level of the peak in 2007. Nikkei MC Aluminum downsizes its operations as much as current domestic market and improves profitability by cost cut.