Japan’s Showa Denko is selling its aluminum cans and rolled products business to US-based investment firm Apollo Group, the company announced in a filing on Jan 27.
The two aluminum businesses had reported a combined sales revenue of JPY55.42bn in 2019, Showa Denko said in its filing. It expects to complete the formalities of splitting both the businesses and selling them to Apollo by August.
Showa Denko has been looking to divest from some of its non-core businesses after it realigned its business strategy to focus on the chemicals industry in December 2020. Although the Japanese materials manufacturer did not disclose the value of this divestment, media reports estimate the deal to be valued at around JPY50bn ($479.7mn).
The company began its aluminum cans business in 1971 and had upgraded its production facilities in Japan in June 2020 to increase its production capacities. The company also opened its third facility for aluminum cans manufacturing in Vietnam in July last year, owing to the burgeoning demand for cans in that region.
Showa Denko’s aluminum rolling business began operations in 1933 and produces high purity aluminum foil for electrolytic capacitors and for aluminum plates used in construction. The company expanded its rolling business in 2013 with a facility in Nantong, China, and expects this market to grow in the future.