Japan’s aluminum firms hike Chinese output

Nippon Light Metal Co., Mitsubishi Aluminum Co. and other top aluminum firms are ramping up output of auto-use products in China to meet demand in the world’s biggest car market. Nippon Light Metal will fork out ¥300 million (US$3.47 million) to increase sunroof rail assembly lines at its Shanghai plant from 7 to 12 this fiscal year. The rails will be made from rod-shaped raw materials purchased from local manufacturers. Spending ¥850 million (US$9.83 million), Mitsubishi Aluminum next year intends to double annual production of an aluminum material used in heat exchangers to 5,280 tons from the current 2,640 tons. Kobe Steel Ltd. will build a plant in Jiangsu Province to churn out forged aluminum products for car suspensions. Output is scheduled to begin in 2012, with production capacity set at 70,000-80,000 units a month. Meanwhile, Sumitomo Light Metal Industries Ltd. plans to spend ¥500 million (US$5.78 million) to add a line to cut coils from aluminum sheets at a Jiangsu Province facility this fiscal year. To date, the bulk of aluminum products have been made domestically. By beefing up Chinese output, the companies aim to slash production costs. (July 28, 2010)