Showa Aluminum Can to Streamline Domestic Production Lines

May 28, 2019
Showa Denko K.K.

Showa Aluminum Can Corporation (SAC), a consolidated subsidiary of Showa Denko (SDK) (Tokyo: 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.