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Tuesday, 14 February 2017, 15:30 JST
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Source: Showa Denko K.K.
Showa Aluminum Can to Establish Second Production Base in Vietnam
New Factory in the Mid Region, Adds Can End Line in the North, toward Annual Output of 2 Billion

TOKYO, Feb 14, 2017 - (JCN Newswire) - Showa Aluminum Can Corporation (SAC), a consolidated subsidiary of Showa Denko ("SDK"; TSE:4004), headquartered in Shinagawa Ward, Tokyo, will establish its second base in Vietnam to produce aluminum cans, aiming to expand its business in that country. This new production base is to be located in Quang Nam Province, which occupies the mid-portion of Vietnam.

In May 2014, SAC acquired a majority of shares in Hanacans Joint Stock Company (Hanacans), of Vietnam, a manufacturer of aluminum beverage cans located Bac Ninh Province, which is in the suburbs of Hanoi, and made Hanacans its consolidated subsidiary. Since then, SAC has been favorably increasing Hanacans' sales of beverage cans in Vietnam, centering on the northern part of the country. SAC has been investigating feasibility of the expansion of production capacity of Hanacans because the operating rate of Hanacans' production lines has been at high level since the second half of 2016.

Quang Nam Province, where SAC decided this time to establish Hanacans' new production base, is contiguous with Da Nang City, the largest city in the mid-portion of Vietnam. Backed by policies of the Vietnamese government to enhance industrial infrastructure and attract businesses there, many Vietnamese and foreign beverage manufacturers have decided to establish, or already established, their factories in Quang Nam Province. This time, SAC decided to establish a new production base in that Province because Hanacans had already started to ship its products to the mid-portion of Vietnam, and rapid expansion of the market for aluminum cans in Vietnam is surely expected in the future.

At the new factory, SAC will install a line that can produce 700 million can bodies a year. In addition, synchronizing with the installation of the new can-body production line at the new factory in Quang Nam Province, SAC will install an additional line to produce can ends in Hanacans' existing factory in the suburbs of Hanoi. Through the installation of these new lines, Hanacans' capacity to produce can bodies and can ends will be expanded to that for 2 billion cans a year by October 2018. The total investment of this time is expected to be 5 billion yen.

Since its acquisition of Hanacans in 2014, SAC has been introducing its leading-edge production technologies and quality control system into Hanacans, and striving to strengthen Hanacans' existing customer base and cultivate new customers, focusing on foreign affiliated beverage manufacturers. SAC will pursue further expansion of its aluminum can business in Vietnam through its effort to make Hanacans' new aluminum can factory the one that quickly and timely offers the best quality products in the region which meet needs of the market.

Contact:
Public Relations Office
Phone: 81-3-5470-3235


Topic: Press release summary
Source: Showa Denko K.K.

Sectors: Chemicals, Spec.Chem
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