Ahresty to Transfer Surplus Die Cast Facilities from Japan to Overseas

Ahresty, Japanese major die casting maker, is preparing to transfer suspended facilities in its domestic plants to overseas productive sites in China and India where strong demand growth is expected. Ahresty plans to transfer 2 middle- or large-class die casting machines to Guangzhou Ahresty Casting (GAC), a subsidiary in China, within 2009 and additional one until March 2010. Ahresty will also transfer 1 middle-size die casting machine to Ahresty India (AIN), a subsidiary in India, by March 2010.

GAC is in high operation with favorable order receipts. On the other hand, Ahresty’s domestic die cast plants in Toyohashi, Kumamoto and Tochigi are suffered from low operating rate and suspending some of die casting machines and machining facilities along automotive market’s stagnancy. Ahresty will transfer surplus facilities from domestic plants to overseas group companies in order to expand overseas output capacity with small capital expenditure.

For GAC and AIN, the firm may also transfer machining facilities. As to Ahresty Mexicana, a subsidiary in Mexico, capacity expansion is not scheduled in a short term as long as US car market condition is unforeseeable, though order growth is expected for a long term.

Automakers, those who purchase die casts, are raising auto parts procurement rate from local component suppliers at their overseas sites in order to minimize negative impact by currency exchange rate fluctuation. Japanese major die casting makers aim to meet the demand growth in emerging countries such as BRICs by transferring surplus equipment from domestic plants to overseas sites.