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Daiki Aluminium Industry of Japan has signed up to to invest $30 million (about ₹225 crore) in Andhra Pradesh to build an aluminium alloy unit with a capacity of 84,000 tonnes a year.
The project is expected to generate direct employment for 600. The company has submitted the detailed project report and will apply for pre-establishment approvals and clearances soon. The foundation stone is planned to be laid in early February.
MoU signed
A memorandum of understanding was signed by J Krishna Kishore, Chief Executive Officer, AP Economic Development Board, and Takaaki Yanamoto, Group President, Daiki Aluminium Industry.
Established in 1922, Daiki Aluminium is one of the oldest alloy manufacturing companies in the world. Headquartered in Osaka, Japan, Daiki has five manufacturing locations in Japan and a market share of 35 per cent in the country.
In addition, Daiki has manufacturing locations in Malaysia, Thailand, Indonesia, the Philippines, Vietnam, China and Poland.
Aluminium recycling
With a total production capacity of 80,000 tonnes a month, it is one of the largest aluminium companies in the world, with clients including Honda, Toyota, and Nissan.
APEDB CEO Krishna Kishore said, “Aluminium recycling is gaining in importance as an economically valuable secondary raw material across the world. The State continues to fill existing gaps in the circular economy and is delighted to have India’s biggest recycling aluminium alloy plant in Andhra Pradesh.”
This investment was facilitated by APEDB, a single point of contact for spearheading sustainable growth through investments, partnerships and collaborations.
The raw material initially will be imported from the US, the UK and major European markets and the finished goods will be exported to ASEAN markets and Japan for supply to automobile companies.
Daiki aims to capture the demand requirements of aluminium alloy in India and expand the market sequentially.
“The plant will have a low-emission profile as 20-25 per cent of the investment will be spent on pollution-control machinery, equipment and environment education,” Kishore added.
Other Japanese companies
AP has attracted several leading companies from Japan, including Isuzu Motors, NHK Springs, Kobelco, Nippon, THK, Toray Industries, Mitsui and Mitsubishi.
Andhra Pradesh is working to set up a Japanese Industrial Townships and Japan India Institutes to attract capital as well as manufacturers.
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