Daiki Aluminum Industry, Japanese largest maker of secondary aluminum alloy, is reducing secondary aluminum alloy output at offshore subsidiaries as well as domestic plants. Daiki Nikkei Thai, the wholly owned subsidiary in Thailand, is decreasing the production by 20% or 1,000 tonnes per month in and after October compared with the previous level. Secondary aluminum demand is also declining in Southeast Asia due to automobile market slowdown.

 

Output capacity of Daiki Nikkei Thai is 6,000 tonnes per month. The subsidiary had kept high operation at 5,500 tonnes per month by September. The subsidiary supplies secondary aluminum alloy to automakers and die casting makers in Southeast Asia. Auto related demand is sharply weakening and the subsidiary's order receipt is decreasing in and after October.

 

Another subsidiary in Malaysia, DIK (Malaysia) is also reducing the output. Output capacity of DIK (Malaysia) is 1,800 tonnes per month. The plant had kept almost full production at 1,700-1,800 tonnes per month since the beginning of this year. The output slightly decreased to 1,650 tonnes in October. –Japan Metal Bulletin