A Japanese firm announced plans last week to invest ₹2.5 billion (US$36.1 million) in an aluminium alloy ingot plant to be constructed in South India.
Per domestic reporting, Daiki Aluminium Industry Co. Ltd’s subsidiary Daiki Aluminium is planning to build the plant, with a planned nameplate capacity of 84 thousand metric tons per annum, on a 40-acre tract of land at Sri City, a smart integrated business city in the Domestic Tariff Zone near Chennai, Tamil Nadu.
Daiki says the plant will be the firm’s bid at capturing a portion of the automotive aluminium market share in ASEAN and Japan. The plant is expected to be a boon to the local economy as well, as it will employ around 600 workers, with 80 percent of the workforce to be composed of women.
Takaaki Yamamoto, Daiki Aluminium’s President, said that the plant would use the latest in pollution-control technology, holding itself to the more stringent regulations on emissions it works under in Japan.
“We are very pleased to welcome Daiki group, which is one of the world’s largest secondary aluminium production company,” said the founder and managing director of Sri City, Ravindra Sannareddy. “As Aluminium recycling is gaining importance as an economically valuable secondary raw material, we are delighted to have Daiki in Sri City, as it would effectively meet the increasing demand for secondary aluminium, and thereby help in saving mineral resources in the country.”
Founded in 1922, Daiki boasts a company-wide nameplate capacity of 80 thousand metric tons per month, placing it among the most prolific makers of aluminium on Earth. The firm counts Nissan, Honda, and Toyota as top-tier buyers of its factories’ output.
The firm is one of the oldest aluminium alloy producers in the world, operating five manufacturing locations domestically as well as running plants in Malaysia, Thailand, Indonesia, the Philippines, Vietnam, the People’s Republic of China, and Poland. Daiki owns a market share of 35 percent in its home country.