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Capital Participation in Huafon Aluminum Co.,Ltd.(People`s Republic of China) for Aluminum Rolling Business

April 15th, 2013
Nippon Light Metal Company, Ltd.

Nippon Light Metal Co., Ltd. (Shinagawa-ku, Tokyo, President: Takashi Ishiyama; hereinafter referred to as NLM) concluded a joint venture agreement on November 12, 2012, with Huafon Aluminum Co., Ltd. (Jinshan District, Shanghai city, People’s Republic of China, President: You Xiaohua; hereinafter referred to as Huafon Aluminum), agreeing to acquire a 33.4% equity stake in Huafon Aluminum through subscription to a third-party allocation of shares by Huafon Aluminum. Huafon previously received approval from the Shanghai Municipal Commission of Commerce to operate as a foreign-investment company.

Huafon Aluminum

Established in 2008 by the Huafon Group, which comprises numerous chemical products companies, Huafon Aluminum is an aluminum rolling company, particularly targeting its strategic development of the market for heat exchanger aluminum sheets. Huafon Aluminum’s facilities and human resources give it a competitive advantage in the production of these products, and it has already received recognition by major U.S. and European manufacturers as a top-ranking global supplier.

Outline and Aims of Joint Venture

By expanding sales in the markets NLM has for Japanese manufacturers as well as the markets Huafon Aluminum has developed in Europe, the United States, and South Korea, both companies have a shared strategy for taking a leading position in the fast-growing market for high-quality aluminum products, which led to their capital tie-up. NLM possesses superb alloy design technology and production and manufacturing technology for producing high-quality aluminum plates, and Huafon Aluminum has advanced manufacturing facilities and worldwide marketing bases. Both companies intend to combine their management resources in a plan to use the funds created by the increase in capital for additional sequential investment in facilities and equipment to meet expanding demand with the aim of offering high-quality and low-cost products.

Moreover, through collaboration with Nikkei Siam Aluminum Limited (headquarters: Bangkok, Thailand; president: Shunichi Sugita; 100% owned by NLM), which, with the completion of its investment in expanding its facilities, has heightened its competitiveness, the three companies will establish a wide-reaching production and marketing network with three hubs in Japan, China, and Thailand, allowing them to provide a stable supply of trusted products to the promising and burgeoning markets in China and the ASEAN countries.

As for the name for the company with the new infusion of capital by NLM, so that their customers will recognize their product brands, both companies have agreed on the name Huafon Nikkei Aluminum Co., Ltd. They are planning to reach an annual production of 100,000 tons and achieve annual sales of 31 billion yen by 2016.

The NLM Group is committed to its aim of being a continuously growing and strong corporate group by furthering its positive investments in management resources in order to enter new markets and expand its presence in the domestic market, which is expected to grow.

Profile of Huafon Group

  Trade name: Huafon Group Co.,Ltd.
  Location: Ruian City, Zhejiang Province
  Established: 1991
  Capital: 1.4 billion yuan (approximately 21 billion yen)
  No.of employees: 6,000 (consolidated basis)
  Main products: Polyurethane, spandex, and other chemical products

Profile of Huafon Aluminum(after NLM`s capital participation)

  Trade name: Huafon Nikkei Aluminum Co., Ltd.
  Location: Jinshan District, Shanghai city
  President: You Xiaohua
  Capital: 600 million yuan (approximately 9 billion yen)
  Investment ratio:

Huafon Group Co.,Ltd.: 54.1%
Nippon Light Metal Co., Ltd.: 33.4%
Other shareholders: 12.5%

  No.of employees: 426
  Description of business: Production and marketing of rolled aluminum products

In addition, a number of officials and employees are scheduled to be dispatched from Nippon Light Metal.


For inquiries about this news release ,please contant:
+81-3-5461-9333 Public Relations Office,Nippon Light Metal Co.,Ltd.

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