News Release
New Year Message from the CEO (Abstract)
New Year Message from the CEO (Abstract)
Take care and Happy New Year, everyone.
Last April saw a major structural change as we transferred the Shin Nikkei Co., Ltd., to the JS Group Corporation. Since we participated in management of Nasu Aluminium in 1950, many elders, including current employees, have put their energy into Shin Nikkei to grow and protect the enterprise. It was a tough decision to make to part with Shin Nikkei, but we could not afford to delay the transfer. I am relieved to know that the current Shin Nikkei is on track to post a surplus for the first time since fiscal 2010 thanks to the synergy with the JS Group and strenuous efforts by its employees.
While a recovery trend in the global economy combined with economic stimulus packages in the respective countries helped boost the NLM Group's results for the first half of the year, I am proud of the great efforts by everyone of our group companies. Now that each industrial division has adjusted to the Create, Make, Sell approach, we can take a more aggressive stance going forward.
Last April, we established a new mid-term plan and have actively put it into practice since then.
Our basic policies are as follows:
1. Concentrate resources into organizations in charge of growth markets;
2. Strengthen businesses in which we are the No. 1 manufacturer;
3. Accelerate overseas business expansion notably in China and Southeast Asia;
4. Develop new applications and products by combining elemental technologies;
5. Contribute to environmental conservation by utilizing the properties of aluminum;
6. Improve financial conditions and resume dividend payments;
7. Develop and effectively use personnel; and
8. Strengthen CSR efforts and enhance corporate governance.
For efforts in growth markets, we have selected automotive, electric and electronic materials, information and communications, environment, safety, and energy as target fields, aiming to increase the proportion of these fields in total sales from 36% in fiscal 2009 to 45% in fiscal 2012. In the first half of this year, these fields accounted for 41% of total sales.
For strengthening of businesses in which we are the No. 1 manufacturer, we are going to reinforce the foundations of alumina business by shifting to new raw materials, with plans to launch high value-added products going forward. Toyo Aluminium K.K. is enjoying increasing sales for new foil products and aluminum nitride powders, such as those for condensers and medical and food uses, while Nikkeikin Aluminium Core Technology Co., Ltd., is also expanding the market share for truck parts and vehicle materials.
In terms of overseas business expansion, the Group's overseas sales, which accounted for 16.3% of the total sales in fiscal 2009, have increased to 19.2% in the first half of fiscal 2010. Our efforts for overseas expansion are on a stable track, as shown in the increased production in China by Toyo Aluminium, construction of cold rolling mills by Nikkei Siam, and strengthened production in China by Nikkei MC Aluminum Co., Ltd.
With respect to the development of new products and businesses, the Technology Committee, the respective divisions, and cross-organizational teams have been actively developing new applications by collaboration. This horizontal development approach helps us bring forth new ideas.
As for contribution to environmental conservation, it is no exaggeration to state that we are expected to contribute to environmental conservation in every aspect of our business. Let us always bear this principle in mind as a basic credo for our business activities.
For improvement in financial conditions and resumption of dividend payments, I am convinced that we can achieve these goals by stepping up the ongoing aggressive efforts at each industrial division.
In practicing these corporate activities, what I consider most important is to "Create a workplace where everyone assumes responsibility and takes pride in one's work and where everyone can demonstrate their abilities in a relaxed manner." I believe this also applies to personnel development and establishing a strong CSR framework and corporate governance structure.
In terms of safety, we have occupational safety and health management systems (OSHMS) in place. The safest production site is one in which equipment does not fail and no defective goods are produced. The basic principle of OSHMS is to take measures to ensure that the workplace is kept in such conditions.
Last but not least, let us all members of the Group join forces and work vigorously to make this year a year of strong growth.
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)