News Release

January 4, 2012 New Year's Message from the President and CEO of Nippon Light Metal Co., Ltd. (Abstract)

Take care and Happy New Year, everyone.
Looking back on the last year, we were making a good start when an unprecedented disaster occurred on March 11. A great number of people were killed and injured in the East Japan Earthquake. The disaster was followed by yen appreciation due to financial crises in Europe, the resulting decrease in exports, and the slowdown in the U.S. economy. Although we had heavy floods in Thailand in summer, our three plants in the region remained intact thanks to strenuous efforts by local staff and good luck.
The world is experiencing turbulent times, which significantly affect our business performance. Yet, we were not deterred from putting into practice the Mid-term Management Plan that we launched in the preceding fiscal year. Our efforts for growth markets include new applications for MAXUS, use of development items in power modules and cooling devices for personal computers, heat sinks for LED headlights, aluminum wire for cars, datacenter shelters, increased production of high purity alumina for LED sapphire substrates, and special grade sodium hypochlorite. For strengthening of businesses in which we are the No. 1 manufacturer, facility construction is under way at the Shimizu Plant to shift to new raw materials. Toyo Aluminium K.K. has acquired Showa Aluminium Powder K.K. and enjoys increased sales of processed foils, such as water repellent Toyal Lotus and foils for lithium ion battery housing, while Nippon Fruehauf Co., Ltd., is planning to foray into the ISO container datacenter and aluminum trailer businesses.
For overseas business expansion, Toyo Aluminium K.K. added aluminum powder manufacturing lines and back sheet lines and also installed new electrode ink lines in China. Nikkeikin Aluminium Core Technology Co., Ltd., added three sliding roof rail lines in Shanghai. The Heat Exchanger Div. established a plant in Thailand to manufacture heat exchangers for room air conditioning. Nikkei Panel System Co., Ltd., is also constructing a plant in Thailand, while Nikkei Siam Aluminum Limited is building a cold rolling mill. In addition, Nippon Fruehauf Co., Ltd., and Nikkeikin Aluminium Core Technology Co., Ltd., agreed to establish a joint venture for truck bodywork and automotive parts in China, with preparations underway for constructing a plant. Intended to serve local needs, all these overseas businesses will grow into key players in the respective regions as they will utilize the technologies and business models we have cultivated over the years.
At a NPS trainer workshop held in the Kambara Complex in last October, our Create, Make, Sell approach, in which each team manages its profit and loss to find areas that need improvement and implements measures, received a high evaluation. Indeed, the current NPS textbook, which was revised last year, focuses on cross-organizational improvement efforts by the sales, development, and manufacturing divisions. Let us continue with our management approaches with confidence.
Next, I would like to introduce two episodes from the last year that brought home to me the increased organizational strength of the NLM Group. First is the post-earthquake restoration efforts by personnel of Nikkei Panel System Co., Ltd., who persevered until the restoration work was completed despite adverse conditions. Second is the efforts to fight against floods in Siam. Many employees stayed at the plant for days, appropriately addressing every water leak from the walls day and night. It was thanks to their painstaking efforts that our plant did not sustain damage while nearby industrial estates were submerged. I was very pleased to hear this news, thinking how strong our group had become.
This year, I would like to achieve the goals of the Mid-term Management Plan by (1) promoting profit and loss management on a product-by-product basis in the Create, Make, Sell approach; (2) ensuring profitability of overseas businesses; and (3) development of new products, new businesses and new technologies.
Some of you may know that I won the Medal with Blue Ribbon last November. Winning this medal would not be possible without the NLM Group's business performance and commitments to safety and compliance. For me, the medal represents a recognition for the NLM Group from the country of Japan. Let us start this year by continuing to pursue all-hands compliance activities in the safety-first approach.
I would like to end this New Year message by extending my best wishes for the continued health and happiness of all of you and your family members.
For inquiries regarding this news release, please contact the Public Relations and IR Office of Nippon Light Metal Co., Ltd.
(Tel: +81-3-5461-9333)