Showa Denko K.K. (TSE: 4004) announces the sale of its shares in Nippon Amazon Aluminium Co., Ltd. (NAAC) to Mitsui & Co., Ltd. The sale was approved by NAAC at its board of directors' meeting on January 14 and completed with the transfer of shares from SDK to Mitsui on January 20.
NAAC was established in 1977 by Japanese investors to collectively own 49% of Albras, an aluminum smelter using bauxite resources in the basin of the Amazon. The project was part of the economic cooperation between Japan and Brazil.
NAAC was initially formed by 32 private companies (now reduced to 29) and the Overseas Economic Cooperation Fund, which has been reorganized into the Japan Bank for International Cooperation. Prior to the transaction, SDK owned 3.21% (3,685,500 shares) in NAAC and Mitsui 2.75% (3,159,000 shares).
Under the ongoing medium-term consolidated business plan, the Sprout Project, SDK is proceeding with the restructuring of commodity aluminum operations.