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SDK Increases High-Purity Aluminum Production Capacity

Showa Denko K.K.
January 25, 2008

Showa Denko Sakai Aluminum K.K. (SSK), a consolidated subsidiary of Showa Denko K.K. (SDK) based in Sakai City, Osaka Prefecture, has completed construction of a new aluminum refining line, increasing its high-purity aluminum slab production capacity from 1,000 tons a month to 1,600 tons a month. SSK rolls the slabs—with purity as high as 99.99%—into high-purity aluminum foils, which are then marketed by SDK to electrolytic capacitor manufacturers.

With the completion of the new refining line, SSK has increased its rate of internal procurement of high-purity aluminum slabs from around 70% to 90%. SSK’s high-purity aluminum foil production capacity has also increased from 1,500 tons a month to more than 1,800 tons a month. SDK intends to strengthen its competitive position in the high-purity aluminum foils business by taking advantage of the expanded capacity at SSK and further improving the product quality.

Demand for aluminum electrolytic capacitors has increased substantially in recent years for use in electric appliances such as flat-panel TVs and automotive parts, resulting in higher demand for high-purity aluminum foils. In and after the third quarter 2007, in particular, high-purity aluminum foil production in Japan has continued to exceed 4,000 tons a month. The market is expected to grow at an annual rate of around 10% owing to such factors as the Beijing Olympics to be held this summer and increased demand for hybrid cars.

Under the “Passion Project” consolidated business plan, which runs from 2006 through 2008, SDK is proceeding with structural reforms of its aluminum business by expanding high-value product lines, such as aluminum cylinders for laser printers. In the area of high-purity aluminum foils for electrolytic capacitors, SDK is the industry leader both in Japan and the international market. We will continue to meet customer expectations through further capacity expansion in a timely manner and the provision of high-quality product.

For more information, contact:
IR & PR Office (Phone: 81-3-5470-3235)


New refining line