May 28, 2019 15:00 JST

Source: Showa Denko K.K.

Showa Aluminum Can to Streamline Domestic Production Lines

TOKYO, May 28, 2019 - (JCN Newswire) - Showa Aluminum Can Corporation (SAC), a consolidated subsidiary of Showa Denko (SDK; TSE:4004), headquartered in Shinagawa Ward, Tokyo, has decided to stop a part of its production lines to manufacture aluminum cans in its Oyama Plant and Hikone Plant, in order to respond to changes in the domestic market environment.

In the domestic market for aluminum cans, the demand for cans for alcoholic beverages continues to be strong due to an increase in the demand for alcoholic beverages other than beer and beer-like beverages, though the demand for beer/beer-like beverages continues declining. However, the demand for aluminum cans for non-alcoholic beverages is expected to decrease significantly due to a shift from aluminum cans to PET bottles. As a result, the total demand for aluminum cans in Japan is expected to continue stagnant into the future.

SAC has been manufacturing aluminum cans in its three plants in this country, located in Oyama, Hikone and Omuta. However, in order to respond to the above-mentioned changes in domestic market environment, SAC decided this time to stop a part of lines to produce aluminum cans, mainly for non-alcoholic beverages, and streamline its production capacity to be about 60% of the current level by June 2020.

Hereafter, SAC's domestic aluminum can business will focus its management resources mainly on production of cans for alcoholic beverages, aiming to stabilize its revenue base. SAC will also promote further development of ink-jet printing technologies suitable for production of multiple models and smaller lots, search for new use of aluminum cans, and introduction of formulas linked to aluminum-metal prices to calculate and determine sales prices of aluminum cans.

The Showa Denko Group has a vision of becoming a corporate group of Koseiha businesses (individualized businesses), which can maintain profitability and stability at high levels in each business sector, and aims to make more than half of its business sectors Koseiha businesses by 2025. The Showa Denko Group will aim to evolve our aluminum can business into a Koseiha business, by strengthening its profitability in Japan, and expanding production bases overseas.

Contact:
Showa Denko K.K., Public Relations Office, Tel: 81-3-5470-3235
Source: Showa Denko K.K.
Sectors: Metals & Mining, Print & Package

Copyright ©2024 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

Related Press Release


Showa Denko Launches Mass Production of 6-inch SiC Single Crystal Wafers
March 28 2022 11:00 JST
 
SDK Corrects Segment Information in 2021 Consolidated Financial Statements
March 11 2022 14:00 JST
 
Showa Denko Group Starts to Consider Transformation into Holding Company Structure
March 09 2022 14:00 JST
 
Showa Denko Decides Firm Name of the Newly Integrated Company
March 09 2022 14:00 JST
 
SDK Announces 2021 Consolidated Financial Results
February 14 2022 13:00 JST
 
SDK to Revise Amount of Director Compensation (in Money) Following Revision of Director Compensation Scheme and to Partially Revise Performance-Linked Stock Compensation Scheme
February 14 2022 13:00 JST
 
Showa Denko Accelerates Search for Optimal Formulation of Semiconductor Materials with Quantum Computing Technology
February 10 2022 12:00 JST
 
Showa Denko Revises Forecast of Consolidated Performance
February 09 2022 15:00 JST
 
New Year Message from Hidehito Takahashi, Showa Denko President and CEO
January 04 2022 13:00 JST
 
Showa Denko Develops HD Media for MAS-MAMR Technology
December 10 2021 12:30 JST
 
More Press release >>

Latest Press Release


More Latest Release >>