Showa Denko Group to Acquire Aluminum Can Maker in Vietnam
Tokyo, Jan 8, 2014 - (JCN Newswire) - Showa Denko (SDK)(TOKYO:4004) and its
wholly owned subsidiary Showa Aluminum Can Corporation (SAC) have reached
agreement with major shareholders of Rexam-Hanacans Joint Stock Company
(Hanacans), of Vietnam, to acquire 91.75% of shares in the company. Hanacans is
manufacturing and selling aluminum beverage cans in Vietnam.
In 1971, SAC became the first company in Japan to manufacture and sell
aluminum beer cans. Since then, the company has supplied high-quality products
to various beverage makers in Japan, expanding its business in line with the
market growth. In recent years, however, the domestic market for beverage cans,
including aluminum cans, has matured due partly to the dwindling population.
Thus, there is no prospect of major growth of the aluminum can market in Japan.
On the other hand, the emerging markets in China and Southeast Asia are
expected to grow at high rates, reflecting the increases in population and
In particular, Vietnam has the highest beer consumption in Southeast Asia. Due
to the increase in alcohol consumers, reflecting the rise of young working
people, beer consumption in Vietnam is expected to surpass the current level in
Japan by 2018. Furthermore, demand for canned beer is expected to grow due
partly to the spread of refrigerators.
Hanacans is the leading aluminum can producer in the northern and central
regions of Vietnam in terms of production capacity and market share.
Furthermore, the company has recently completed the introduction of
state-of-the-art production facilities. In addition to its solid customer base,
Hanacans will introduce SAC's production technology and process control
know-how to further strengthen its competitive power in the Vietnamese market.
In accordance with the medium-term business plan PEGASUS, the Showa Denko
Group is expanding its operations in the growing markets, centering on Asia.
Under "PEGASUS Phase II" for the 2014-2015 period, the Group will
position the aluminum can business as a "Growth" business, aiming to
increase its scale and profit. The acquisition of Hanacans is part of this
Outline of Rexam-Hanacans Joint Stock Company
Head office: Bac Ninh Province, Vietnam (20 km from Hanoi)
Representative: Mr. Man Ngoc Anh
Capital stock: 383,987 million Dong (Approx. JPY 1,830 million)
Shareholders: Mr. Anh and his family: 83.57%; Three HANAKA Group companies:
(After the share transfer: HANAKA 8.25%; SAC 90%; SDK 1.75%)
Scope of business: Production and sale of aluminum cans for beer and other
types of beverages
Number of employees: Around 140
The transfer of shares is scheduled to take effect in March 2014.
This transaction will have only slight influence over SDK's consolidated
business results for the term ending in December 2014.
About Showa Denko
Showa Denko K.K. ('SDK'; TSE: 4004, US: SHWDF) is a major
manufacturer and marketer of chemical products serving a wide range of fields
ranging from heavy industry to the electronic and computer industries. SDK
makes petrochemicals (ethylene, propylene), aluminum products (ingots, rods),
electronic equipment (hard disks for computers) and inorganic materials
(ceramics, carbons). The company has overseas operations and a joint venture
with Netherlands-based Montell and Nippon Petrochemicals to make and market
polypropylenes. In March 2001, SDK merged with Showa Denko Aluminum Corporation
to strengthen the high-value-added fabricated aluminum products operations, and
is today developing next-generation optical communications-use wafers. For more
information, please visit www.sdk.co.jp .
Showa Denko KK (SDK)
Public Relations Office
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