News Releases

SDK to Integrate Southeast Asian Bases for Aluminum Automotive Parts

Showa Denko K.K.
November 9, 2016

 Showa Denko (SDK) (Tokyo: 4004) has decided to integrate the aluminum forging plant of SHOTIC Singapore Pte. Ltd. (STS), located in Singapore, with the aluminum casting plant of SHOTIC Malaysia Sdn. Bhd. (STM), located in Johor, Malaysia, aiming to strengthen competitiveness of its SHOTIC business. STM will start to produce forged aluminum products in the first half of 2017.

 Showa Denko Group’s SHOTICTM continuously-cast aluminum rod has homogeneous and fine metal structure realized by the Group’s proprietary continuous-casting technology and the properties of high-temperature strength, wear and corrosion resistance. By utilizing this continuously-cast aluminum rod as a material, the Showa Denko Group also manufactures forged aluminum products which have the properties of high strength, anti-wear sliding, and low thermal expansion coefficient. The Group promotes these continuously-cast aluminum rods and forged aluminum products under the unified trade name of SHOTICTM, and offers various products including parts for compressors for cars, pistons for engines, and parts for suspensions.

 In its SHOTIC business, the Group currently has four production bases: one in Japan and three overseas. SDK’s Kitakata Plant located in Kitakata City, Fukushima Prefecture, Japan, has an integrated system to produce cast and forged products, and functions as the mother factory of the Group’s SHOTIC business, exercising leadership in the improvement of manufacturing technique and the development of new products. The Group has operated three plants overseas: STM as a casting plant, and STS and SHOTIC Europe (STE), located in Portugal, as forging plants. The Group started to operate STM in 2014, aiming to expand the Group’s SHOTIC business in Southeast Asia and improve stability of the supply chain of SHOTICTM products with the establishment of the Group’s second casting plant. The need for weight reduction of cars is continuously growing all over the world, and consequently, the car manufacturers’ demand for aluminum automotive parts is expected to increase in the future. Under these circumstances, SDK decided to relocate STS’s forging function into the plant of STM and establish an integrated SHOTICTM production system including casting and forging processes, in order to improve quality and productivity, strengthen competitiveness of SHOTIC business in the global market, and respond appropriately to the growing demand for aluminum automotive parts in the markets of ASEAN, China and India.

 In its ongoing medium-term business plan “Project 2020+,” SDK classifies its SHOTIC business into “Base-shaping” business. Through this establishment of global supply system of SHOTICTM products with three production bases, namely, Kitakata Plant, STM and STE, the Showa Denko Group will respond quickly to our customers’ requests, promote development of cast and forged products that contribute to weight reduction of cars, and strengthen competitiveness of its SHOTIC business.

For further information, contact:
Public Relations Office (Phone: 81-3-5470-3235)

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