Daiki Aluminum Industry, Japanese largest secondary aluminum alloy maker carries out JPY 610 million of CAPEX to raise secondary aluminum alloy output capacity or to install new facilities for metal scrap and substantial material processing at its three subsidiaries in Thailand, Malaysia and Indonesia.
Thai subsidiary, Daiki Aluminum Industry (Thailand) will introduce a pre process facility for shredder mix metal and a processing facility for dross
with total 280 million yen CAPEX. The pre-processing machine will treat shredder mix metal, the main material for secondary aluminum alloy, at 1,000 tonnes per month. The dross processing machine will be utilized to recycle dross for in house consumption and sales to third parties as deoxidizing agent for steel making.
Indonesian subsidiary whose construction finished in July 2011, PT Daiki Aluminum Industry Indonesia will install a pre-processing facility for low grade scrap with 250 million yen CAPEX. Malaysian subsidiary, Daiki Aluminum Industry (Malaysia) will introduce an additional melting furnace and raise the output capacity by 200 tonnes to 300 tonnes to 2,400 tonnes to 2,500 tonnes per month. The CAPEX is JPY 80 million.
The new melting facility can save energy consumption as well as reuse exhausted gas. Monthly output at Daiki Aluminum Industry (Thailand) is expected to recover to 5,300 tonnes in February against the output capacity at 8,000 tonnes. The production temporarily decreased to below 4,000 tonnes after flood in Thailand.
Daiki Aluminum Industry (Malaysia) schedules furnace repair this month. The monthly output will decrease to 1,800 tonnes against the capacity at 2,200 tonnes. Monthly output at PT Daiki Aluminum Industry Indonesia is expected to reach 1,000 tonnes in March against the capacity at 2,500 tonnes.
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