Nippon chases overseas sales

Nippon Light Metal Co will boost aluminium product output in China as demand from the world's largest consumer may grow 16%/y in the next five years, the company president said.

The fifth-largest Japanese maker of rolled-aluminium products plans to add at least two production facilities in China within three years on demand growth, Takashi Ishiyama said.

Nippon Light Metal raised its forecast for group net income on July 30 by 18.2% to JPY6.5bn ($75M) and revenue outlook by 5.3% to JPY400bn ($4.6bn).

Asia will have a bigger impact on its business than the US and Europe, Mr Ishiyama said.

Nippon Light Metal expects its overseas sales will represent 19.4% of total revenue in the year begi-nning 1 April, 2012, from 17% this year. China may account for 40% of overseas sales, while Thailand and other Southeast Asian nations may represent 40%, Ishiyama said.

The company has six production facilities in China.