Furukawa-Sky (TYO:5741) and Mitsui (TYO:8031) to Invest in Chinese Rolled Aluminum Firms

Tokyo, Oct 9, 2009 AEST (ABN Newswire) - Furukawa-Sky Aluminum Corp. (TYO:5741) will team up with Mitsui & Co. (TYO:8031) to take large equity stakes in two makers of rolled-aluminum products in China.

Both Chinese firms are aluminum rolling subsidiaries of Guangdong Dongyangguang Aluminum Co. Ltd., manufacturing and marketing such products as aluminum foils for condensers and fins for air conditioners.

Furukawa-Sky and Mitsui will invest several billion yen to purchase existing shares participate in the management of the two Chinese companies. Furukawa-Sky will own a 25% stake and Mitsui a 20% stake in each.

Furukawa-Sky, which aims to develop new customers in China, will also transfer technology to the Chinese firms to manufacture high-value-added products such as automobile radiators for markets both inside and outside China.