Showa Denko Withdraws from Architectural Al Extruding Materials

Showa Denko announced on Wednesday the firm ceases productive lines for aluminium extruding materials, mainly for architectural materials, in Hikone plant, Shiga, Japan until the end of 2009. This is one of optimizing measures along Showa Denko’s mid-term management plan announced on July 30. The firm also encourages voluntary retirement in Hikone plant and Oyama plant, Tochigi, Japan.

Showa Denko will post extraordinary loss of 1.5 billion yen for impairment of Hikone plant’s productive facilities and 3.7 billion yen for premium severance payment to voluntary retirement.

The firm decided to withdraw from production of common aluminium extruding materials when new housing starts and manufacturing industries’ investment maintain very stagnant. The firm judged business circumstance is too severe to be covered by productivity improvement and cost cut efforts. Meanwhile, the firm continues aluminium extruding business for non-architectural specific applications.

Showa Denko optimizes and redeploys workforces in Hikone and Oyama along the withdrawal from common aluminium extruding material business and the reinforcement of heat exchanger business.