Showa Denko (SDK) to Strengthen High-Purity Aluminum Foils Business

Showa Denko K.K. (SDK) has decided to expand its capacity to produce high-purity aluminum foils for electrolytic capacitors at Sakai Plant, increasing aluminum refining capacity, modifying rolling processes, and installing additional annealing facilities by the end of 2013.

SDK has also decided to establish a final processing site in China for start-up in the second quarter of 2013. The site will finish rolled foils supplied from Sakai Plant and provide final products to customers in China.

As a result of the expansion at Sakai Plant and establishment of the new site in China, the Showa Denko Group's ability to provide high-purity aluminum foils will increase by stages from 2,000 tons a month at present to 3,000 tons a month by the end of 2013. The capacity expansion will involve capital investment of around 4.5 billion yen in total.

Aluminum electrolytic capacitors are now used widely in electric appliances, including LCD TVs, air conditioners, refrigerators, and LED lighting. They are also used in energy-saving devices for inverters; PCs and other IT equipment; parts for electric vehicles and plug-in hybrid cars; and in the area of renewable energies, such as wind energy and photovoltaic power generation. Since demand is also increasing in China and other emerging economies, the global market for aluminum electrolytic capacitors is expected to grow around 10% a year through 2015. In particular, demand is expected to grow rapidly for high-voltage aluminum electrolytic capacitors used in environment-friendly cars and in the area of renewable energies.

Unlike commodity aluminum foils for packaging, high-purity aluminum foils for electrolytic capacitors need to be produced by rolling aluminum slabs with purity as high as 99.99%. SDK is currently producing high-purity aluminum foils at Sakai Plant, covering the whole stages from refining, rolling and finishing. The expansion work at the plant will enable SDK to meet growing demand for high-purity aluminum foils used in high-voltage electrolytic capacitors for automotive and renewable energy applications.

SDK is strengthening its high-purity aluminum foils business, considering the product as one of its core product items in the domain of "Electronics." With the establishment of the new production site in China, SDK aims to meet growing demand for high-performance products, centering on high-purity aluminum foils used in high-voltage aluminum electrolytic capacitors.