Capital Participation in Chinese Aluminum Rolling Companies Announced

Furukawa-Sky Aluminum Corp. signed an agreement on October 8, 2009, with Chinese aluminum enterprise Guangdong Dongyangguang Aluminum Co., Ltd. (Head office: Shaoguan City, Guangdong; Legal representative: Jing Ping Guo; Hereafter “Dongyangguang”) regarding joint capital and management participation with Mitsui & Co. Ltd. (Head office: Chiyoda-ku, Tokyo; President: Masami Iijima; Hereafter “Mitsui”) in two aluminum rolling companies controlled by Dongyangguang.

The two aluminum rolling companies controlled by Dongyangguang are Ruyuan Dongyangguang Plain Foil Co., Ltd. (Head office: Shaoguan City, Guangdong; Legal representative: Hongwei Zhang; Hereafter “Ruyuan”) and Shaoguan Yangzhiguang Aluminum Foil Co., Ltd. (Head office: Shaoguan City, Guangdong; Legal representative: Jian Quan Lu Hereafter “Yangzhiguang”). Furukawa-Sky and Mitsui are scheduled to obtain 25% and 20% ownership of the companies, respectively, from existing shareholders Dongyangguang and NORTH & SOUTH BROTHER INT'L INVESTMENT H.K. CO. LIMITED (Head office: Hong Kong; Legal representative: Meigao Guo) by the end of calendar year 2009.

Overall growth in demand for rolled aluminum products in China is expected to continue, driven by the need for materials used in electronics and electric machinery as well as in transport and packaging materials. This growth is projected to be particularly strong in the area of automotive applications due to rising demand and an increase in production sites.
Ruyuan and Yangzhiguang have captured a significant share of China’s domestic market for aluminum foils for capacitors and fin materials for air conditioners, and the companies also produce general-purpose sheets and strips. Looking ahead, the two companies will develop a system for supplying various highly functional products, including materials for automotive heat exchangers, by leveraging the advanced technology and global network of Furukawa-Sky and Mitsui. We intend to raise the corporate value of Ruyuan and Yangzhiguang by promoting sales expansion and market development targeting customers both inside and outside China and by aggressively responding to growing demand, thereby reinforcing their competitiveness.

Ruyuan and Yangzhiguang are scheduled to begin production in 2010 of materials for automotive heat exchangers using technology provided by Furukawa-Sky. Sales to customers inside and outside China are scheduled to commence within that year.