Asia Biz News - Asian Business News and Tenders
Showa Aluminum Can To Open Second Manufacturing Plant in Vietnam
February 14, 2017
With strong demand after its first Vietnam plant was put into operation in 2016, Showa Aluminum Can Corporation (SAC), a subsidiary of Tokyo-based Showa Denko, will soon be building a second manufacturing facility there.
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.
About Showa Denko K.K.
Showa Denko K.K. is a major manufacturer and marketer of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial and high-performance gases and chemicals and high-purity gases and chemicals for the semiconductor industry, and the Inorganics Sector provides ceramics products such as alumina, abrasive, refractory and graphite electrodes and fine carbon products. Today, the Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high-bright LEDs and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit www.sdk.co.jp/english/.