Considering the current business environment and the drop in international aluminium prices, Japanese aluminium manufacturer UACJ has decided to end its joint venture with Indonesia’s Indal Investindo. 

The joint venture is scheduled to end in June.

UACJ is operating in China, Thailand, Europe and North America. 

The joint venture, known as UEXIA, was formed to produce and sell aluminium extrusions used in automotive heat exchangers. 

UACJ will transfer its stock (55pc) in the venture to Indal, which owns 40pc of the joint venture. 

Japanese automotive company Toyoto Tsusho Corporation has a 5pc share. 

UEXIA was formed in August 1998 and is based in Indonesia’s Gresik province, east of Java, and has an annual capacity of 5,400mt. 

The heat exchanger market is heavily dependent on the global automotive industry which has been weighed down heavily by the COVID-19 pandemic.

Announcing Q4 results, UEXIA had reduced its outlook for sale of the extrusions for auto parts to 151,000mt from 155,000mt previously. 

 

Leave a Reply

Your email address will not be published.