AMAG Austria Metall AG signed an agreement with Marubeni Corporation and Marubeni-Itochu Steel Inc. for the commercialization of AMAG’s automotive aluminum rolled products in Japan. The agreement enables the companies to bundle their strengths together in order to bring a number advantages for customers in the Japanese automobile industry concerning quality and delivery performance. In addition, this agreement intends an expansion of cooperation regarding important markets such as the U.S., China, Mexico, India, Thailand, South Korea, and Europe.
With a forecast medium-term growth of about 10% per year, the global automotive industry is an important growth factor for aluminium flat rolled products. Japan in particular is a very attractive market, with a fleet of around 62 million cars and an annual output of around 9.2 million cars. The country ranks third globally in carmakers behind China with 26.7 million vehicles and the US with 11 million vehicles. Around 4.2 million of the cars produced in Japan are exported mainly to North America and Europe.
“By utilizing its global processing and logistic functions among its related group companies, Marubeni will contribute to the reduction of vehicle weight and promote sustainable aluminium by enlarging the marketing of AMAG products in the automotive industry,” said Marubeni in a statement.
AMAG is a leading supplier of high-quality aluminium cast and flat rolled products for industries such as the aircraft, automotive, sports equipment, lighting, mechanical engineering, construction, and packaging industries. The company also holds a 20% ownership in the Canadian smelter Aluminerie Alouette, which produces high-quality primary aluminium while safeguarding an exemplary eco-balance. AMAG recently completed a massive expansion program at its Ranshofen, Austria site, which has provided the technological competence to perfectly positioned the company to meet the growing demand for aluminum in the automotive industry.
Marubeni Corporation has been active in the aluminium business as a trader and investor in aluminium smelters for many years, including a 13.33% co-ownership with AMAG in the Alouette smelter. Marubeni-Itochu Steel operates a supply chain network for processing of steel and aluminium coil with service centers for the automotive industry. As part of the agreement, AMAG will be able to have access to Marubeni’s existing market presence and local distribution and service centre structure
“The Japanese automobile industry stands for innovation, quality and the highest reliability, all of which values also AMAG characterizes,” said Gerald Mayer, CEO of AMAG Austria Metall AG. “In this sense, we are especially pleased to continue developing our business in Asia together with our partners. As a part owner of the Canadian smelter Alouette, we already have a long-term partnership with Marubeni.”