Showa Denko (SDK ) is to build an aluminium casting plant in the state of Johor, Malaysia. Construction will start this year and volume production by the end of 2014.

In addition to an integrated aluminium casting/forging facility at Kitakata, Fukushima Prefecture, Japan, SDK operates plants in Portugal and Singapore producing forged aluminium parts, mostly for the gloab automotive market. The new Malaysian plant will enable SDK to better meet growing demand in Asia.

Car production in the Asean markets, India and China combined is expected to account for around 30% of the world’s total in 2016. As SDK’s major customers expand production capacities in these regions, SDK will further strengthen its supply chain.

Based on its proprietary continuous casting process, SDK makes cast aluminium rods with fine and homogeneous metal structure to produce forged aluminium parts with excellent mechanical properties, such as high strength, good resistance to abrasion, and low thermal expansion coefficient.

Major applications inlcude air conditioner compressor components, pistons and suspension parts.  SDK also sells cast aluminium rods for subsequent forging.

It plans to expand such business as a key contributor to its aluminium segment.