News Release
Joint venture for aluminum alloy in India
July 26, 2012
Nippon Light Metal Co., Ltd.
Nikkei MC Aluminum Co., Ltd.
We report that Nikkei MC Aluminum Co., Ltd., a subsidiary company of Nippon Light Metal Co., Ltd., (ownership ratio: Nippon Light Metal Co., Ltd., 55% and Mitsubishi Corporation 45%; hereafter NMA), has agreed with Century Metal Recycling Private Ltd. (hereafter CMR), one of the largest aluminum alloy manufacturers in India, that they will jointly establish and operate a manufacturing and sales company for aluminum alloys in northern India, and NMA made a joint venture contract with CMR on July 25 this year.
Since, in India, the development of automotive industries has resulted in the rapid growth of the aluminum alloy market in recent years, NMA has carefully studied entry into the Indian markets. The joint venture agreed to this time is considered to give major advantages to both parties because NMA can have a hub in India and CMR is capable of exploring the customers of Japanese-origin companies.
NMA has a policy of using this joint venture as a foothold to participate in the Indian aluminum alloy markets where remarkable growth is expected and to take the opportunity for growth in India to deal with the needs of alloy development for customers who have newly established companies in India.
Outline of joint venture
(1)Date of establishment (planned): September 2012
(2)Trade name: CMR Nikkei India Private Ltd.
(3)Capital: 250 million rupee (about 380 million yen)
(4)Investment ratio: NMA 26% and CMR 74%
(5)Location: Bawal, Rewari District, State of Haryana, India
(6)Manufacturing and selling product: Aluminum alloys
(7)Production capacity: 42,000 tons/year
(8)Capital expenditure: approx. 470 million rupees (about 700 million yen)
(9)Site area: 20,000m2
(10)Manufacture and sales start date: October 2013
Inquiry for release:
Publicity and IR Section, Nippon Light Metal Co., Ltd. Tel: +81-3-5461-9333
General Affairs Department, Nikkei MC Aluminum Co., Ltd. Tel: +81-3-5297-5800
For reference
Outline of Nikkei MC Aluminum Co., Ltd.
(1) Trade name: Nikkei MC Aluminum Co., Ltd.
(2) Location: Kajimachi 2-6-2, Chiyoda-ku, Tokyo
(3) Position and name of representative: President and CEO Shozo Hamamura
(4) Capital: 1 billion yen
(5) Contents of business: Manufacture and sales of aluminum alloys
(6) Production capacity: 138,000 tons per year in Japan and 102,000 ton per year overseas (US, Thailand, and China)
(7) Sales amount (FY 2011): 47.2 billion yen (consolidated) and 31.6 billion yen (single)
Outline of Century Metal Recycling Private Ltd.
(1) Trade name: Century Metal Recycling Private Ltd.
(2) Location: Palwal, Faridabad District, State of Haryana, India
(3) Position and name of representative: President and CEO Mohan Agarwal
(4) Capital: 60 million rupee (about 90 million yen)
(5) Contents of business: Manufacture and sales of aluminum alloys
(6) Production capacity: 128,000 tons/year
(7) Sales amount (FY 2011): 9.7 billion rupees (about 14.5 billion yen)