Mitsubishi Aluminum to produce auto materials with Chinese partner, eyeing EV demand
TOKYO, NNA - Japan’s Mitsubishi Aluminum Co. has teamed up with a Chinese peer to launch a joint venture in the world’s biggest auto market to produce aluminum used auto materials in anticipation of growing demand for eco-cars.
The joint venture is planned to be established by September with Jiangsu Asia-Pacific Light Alloy Technology Co., with a capital of 80 million yuan ($11.3 million) in Wuxi in the eastern province of Jiangsu after the pair seal the contract in June.
Further details such as an amount of investment, production capacity, and date as well as projected revenue have not been decided yet, a spokesman at Mitsubishi Aluminum told NNA on Friday.
The JV will produce aluminum materials used for components like bumpers, battery cases, and structural body parts with an aluminum extrusion technology, the spokesman added. He expects the planned unit to lure demand from Chinese and Japanese auto parts makers in the country.
The auto industry is aiming for a weight reduction in vehicles to lower carbon emissions amid the growing global environmental awareness, leading to more robust demand for lightweight aluminum, Mitsubishi Aluminum said in a statement released Thursday.
Shenzhen-listed Apalt, established in 2003, employs 2,700 people and has an annual production capacity of 250,000 tons of aluminum-used auto materials, generating revenue of 3.53 billion yuan in 2019.