Tokyo, Japan, Aug 21, 2003 - - Showa Aluminum Can Corporation (SAC),
a subsidiary of Showa Denko K.K. (TSE: 4004; hereafter=SDK), will start
production of aluminum bottles for beverages by remodeling one of the
existing aluminum can production lines at its Hikone Plant.
The remodeling work will start this month for completion in March 2004.
The remodeled line's production capacity will be 180 million aluminum
bottles a year, all 310-ml bottles with mouth diameter of 38 mm. The
production capacity can be further expanded to 350 million bottles/year.
Initial investment will amount to approximately Y1.5 billion. SAC is
planning to start selling its aluminum bottles in April 2004 for use
in soft drinks and expects to sell 100 million bottles a year in 2005.
Demand for aluminum cans for alcoholic beverages, centering on beer
and low malt beer, remains steady. However, demand for aluminum cans
for soft drinks has been on the decline due to competition with small-sized
PET bottles.
Aluminum bottles, first commercialized in Japan in 2000, are becoming
increasingly popular because they can be sealed again and easily recycled,
and provide good heat conductivity and barrier property. Demand for
aluminum bottles, which amounted to 1.1 billion units in 2002, is expected
to further increase to 2.2 billion units in 2003. (A forecast by the
Aluminum Can Recycling Association of Japan.)
SAC has decided to start producing aluminum bottles based on the results
of its technical studies and market research. SAC is confident of its
cost competitiveness in aluminum bottle production because the company
can fully utilize its expertise in, and existing facilities for, aluminum
can production. SAC will introduce Takeuchi Press Industries Co., Ltd.'s
technology for the new aluminum bottle production line.
Under the consolidated business plan for the 2003-2005 period named
the "Sprout Project," SDK is strengthening its aluminum can operation
as one of the company's base businesses.
SAC will further conduct research on the aluminum bottle market and
study the possibility of building another line to meet growing demand.
For further information, contact:
PR & IR Group (Phone: 03-5470-3235)
Profile of Showa Aluminum Can Corporation
Sales: Approx. Y36 billion (for the year ended March 31, 2003)
Capital: Y2.16 billion (owned 75% by Showa Denko)
Scope of business: Production and sale of aluminum beverage cans
Head office: 7-13, Shiba Koen 1-chome, Minato-ku, Tokyo
Plants: Oyama (Tochigi Pref.), Hikone (Shiga Pref.), and Ohmuta (Fukuoka
Pref.)
Shipments of Aluminum Beverage Cans in Japan (incl. Aluminum Bottles)
(Unit: 100 million pieces)
For alcoholic For other types Total Of which: Aluminum
beverages of beverages Bottles
2000 116.9 47.1 164.0 1.1
2001 121.8 49.4 171.2 6.1
2002 125.5 49.2 174.7 11.1
2003 128.2 52.5 180.7 22.0
(Forecast)
Source: Aluminum Can Recycling Association
About Showa Denko K.K.
Showa Denko (TSE: 4004) is a major manufacturer and marketer of chemical
products serving a wide range of fields ranging from heavy industry
to the electronic and computer industries. the company makes petrochemicals
(ethylene, propylene), aluminum products (ingots, rods) electronic equipment
(hard disks for computers), and inorganic materials (ceramics, carbons).
The company has overseas operations and a joint venture with Netherlands-based
Montell and Nippon Petrochemicals to make and market polypropylenes.
In March 2001, SDK merged with Showa Denko Aluminum Corporation to strengthen
the high-value-added fabricated aluminum products operations, and is
today developing next-generation optical communications-use wafers.
For further information, please visit the Showa Denko K.K. home page
at: www.sdk.co.jp/index_e.htm
Contact:
Showa Denko K.K.
Nobuhiro Kato
nobuhiro_kato@sdk.co.jp
+81 3 5470 3233
