Showa Denko K.K. (SDK) decided at its board meeting today to consolidate its aluminum alloys business with that of Sumitomo Corporation (Sumitomo) effective July 1, this year. Specifically, Showa Aluminum Alloy K.K. (SAA), a consolidated subsidiary of SDK, will transfer its business to Summit Aluminum Ltd., a consolidated subsidiary of Sumitomo. SAA will be dissolved in 2007.
SAA has been producing and selling aluminum alloys used mainly as castings for automotive parts. To further strengthen marketing activities and improve production efficiency, SDK decided to transfer SAA’s operation to Summit and invest in Summit Aluminum. On June 30, SDK will subscribe for new shares in Summit Aluminum to be issued “for allotment to third party.” After SDK’s equity participation, Summit Aluminum will change its name to Summit Showa Aluminum Ltd., securing the second largest share in the Japanese aluminum alloys market.