Toyo Kohan to Expand Chinese Sales to 10 Billion Yen in 4 Years

Toyo Kohan plans to expand the Chinese sales to annual 10 billion yen by end of fiscal 2012 ending March 2013 under the next 3 years plan, said the president Atsuo Tanaka at presentation on Thursday. The firm builds 3-4 plants for plating of can materials and fabrication of steel binders.

The firm starts to make the new 3 years plan in July. The firm launched new sales company, Toyo Kohan Shanghai in April to expand the sales of binders and hard alloy eying the local production. The firm expects synergy in the group when the parent company, Toyo Seikan Kaisha also tries to expand Chinese business for beverage can.

Toyo Kohan tries to develop new offshore supply network by building new offshore sales force and plant under the new plan starting fiscal 2010 while the firm already has Malaysian plant, Toyo-Memory Technology to make aluminium substrate for magnetic disc. The firm also expands the business at home and abroad by utilizing the expertise.

The firm tries to improve the presence to the customers by offering technology oriented solutions through the resource at production and research & development sectors. The firm tries to follow users’ needs more aggressively to increase the profitability.

The firm expects 59.5% lower consolidated recurring profit at 1.6 billion yen with 13.6% lower sales at 103.1 billion yen for the year ended March 2010 from previous year. The outlook is under the target of 140 billion yen of sales and 6.8% of recurring profit on sales under the current 3-year plan. The firm expects improving economy condition allows the firm to clear the target in 2-3 years while the demand for appliances and automobile couldn’t recover in short term. The firm sees positive sign for the demand when the operation is firm for high performance optical film and nickel plating flat steel for electrode plate of battery for hybrid vehicle.