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SDK to Build Aluminum Casting Plant in Malaysia
—Meeting Demand for Shotic from Car Makers in Asia—

Showa Denko K.K.
 Sep 28, 2012

Showa Denko K.K. (SDK) has decided to construct an aluminum casting plant in the state of Johor, Malaysia.  SDK will start making preparations this year for the construction work, and start volume production at the new plant by the end of 2014.

In addition to an integrated aluminum casting/forging facility at Kitakata, Fukushima Prefecture, Japan, SDK is operating one each plant in Portugal and Singapore for producing forged aluminum parts.  SDK has been selling the products on the world market, mainly for use in automotive parts.  With the scheduled construction of the new casting plant in Malaysia, SDK aims to better meet growing demand in Asian markets.

Due to continued growth of automotive markets centering on emerging countries, car production in ASEAN, India and China combined is expected to account for around 30% of the world’s total in 2016.  As SDK’s major customers will expand their production capacities in these regions, SDK has decided to further strengthen its supply system.  At the same time, by securing casting capability at two locations (Fukushima and Malaysia), SDK intends to ensure the security of supply.

Based on its proprietary continuous casting process, SDK is producing cast aluminum rods with fine and homogeneous metal structure (trade name: ShoticTM).  SDK uses these rods to produce forged aluminum parts with excellent mechanical properties, such as high strength, good resistance to abrasion, and low thermal expansion coefficient.  Major applications of these forged parts are car air-conditioner compressor components, engine pistons, and parts for automotive suspension systems.  SDK also sells cast aluminum rods as raw materials for forged parts.  

By continuing to develop improved cast aluminum rods and forged parts, SDK intends to expand the Shotic business as a key component of its Aluminum segment.

Outline of the new plant
Company name: Shotic Malaysia Sdn. Bhd.
Capital: ¥1.2 billion (planned)
Ownership: Wholly owned by Showa Denko K.K.
Location: Johor, Malaysia
Area of the site: 35,000 square meters
Start-up: 2014 (planned)
Number of employees: Approximately 70 (planned)
Products: Continuously cast aluminum rods, and billet



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