English TopNews Releases2002Heat Exchanger Production Capacity in Czech to be Expanded

March 4, 2002

Showa Denko K.K. (SDK) has decided to expand car air-conditioner condenser production capacity at its consolidated subsidiary Showa Aluminum Czech s.r.o. to meet a growing demand in Europe.

SDK is currently producing and selling car air-conditioner condensers in the United States, Czech and Thailand as well as in Japan. While SDK has met demand in Europe for condensers with export from Japan and local production in Czech, the Company has decided to expand the local production capacity to meet additional market demand and enhance its cost competitiveness.

Specifically, Showa Aluminum Czech s.r.o. will build a new production line to be housed in a new 7,500-squaremeter building, increasing its production capacity by 60,000 units per month, to 120,000 units per month. Investment will total approximately ¥1.3 billion.

Upon completion of the construction at the end of 2002, the plant's total floor space will be expanded to 15,000 square meters. Part of Hikone Plant's equipment will be transferred to Czech. The expanded facilities will become operational in January 2003.

The expansion is part of SDK's efforts to improve global cost competitiveness of its heat exchangers business through restructuring of production setup. Production at the Hikone Plant in Japan was suspended at the end of January 2002. Shift of production to Showa Aluminum (Thailand) Co., Ltd. is also progressing smoothly. The number of local employees at plants in Czech and Thailand will be increased following the expansion.

In the ongoing medium-term consolidated business plan named the "Cheetah Project," the automotive segment constitutes one of the major strategic growth areas for SDK.

[Profile of Showa Aluminum Czech s.r.o.]

[List of Overseas Subsidiaries for Heat Exchanger Production]