Andhra Pradesh to get the biggest Recycled Aluminium Alloy Plant, APEDB Inks Mou with Daiki Aluminium Industry
The Andhra Pradesh Economic Development Board (APEDB) today signed a Memorandum of Understanding (MoU) with Japan-based Daiki Aluminium Industry.
This MoU was signed by Mr. J.Krishna Kishore, Chief Executive Officer, APEDB & Mr. Takaaki Yanamoto, Group President, Daiki Aluminium Industry.
Daiki Aluminium Industry would establish their recycled aluminium manufacturing facility in Andhra Pradesh with an investment of USD 30 million (INR 225 crores) to build an aluminium alloy unit with a capacity of 84,000 metric tonnes per year, which would generate direct employment of 600.
This investment was facilitated by Andhra Pradesh Economic Development Board, a single point of contact for spearheading sustainable growth through investments, partnerships and collaborations.
The raw material initially would be imported from the United States, U.K and major European markets and the finished goods will be exported to ASEAN and Japan for supply to automobile companies. Daiki plans to capture the demand requirements of Aluminium alloy in India and expand the market sequentially.
J.Krishna Kishore, Chief Executive Office, Andhra Pradesh Economic Development Board 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"
"The plant will have a low-emission profile as 20-25% of the investment will be spent on pollution control machinery, equipment and environment education." Mr. Kishore added.
Mr. Takaaki Yamamoto, Group President, Daiki Aluminium Industry said, "I’m impressed by the growth-oriented development and initiatives taken by Government of Andhra Pradesh and the Hon’ble Chief Minister Nara Chandrababu Naidu to promote industries with hassle-free and timely support from Government departments."
Daiki Aluminium Industry's company incorporation works are expected to complete by the end of December 2018. In parallel, Daiki had submitted the Detailed Project Report and will apply for pre-establishment approvals and clearances. Daiki Aluminium targets to plan foundation stone ceremony in early February 2019.
Daiki Aluminium Industry is established in 1922 and it is one of the oldest Aluminium alloy manufacturing companies in the world. Headquartered in Osaka, Japan, Daiki has five manufacturing locations in Japan and has a market share of 35% in the country. Also, Daiki has manufacturing locations in Malaysia, Thailand, Indonesia, Philippines, Vietnam, China, and Poland. The total production capacity is 80,000 MT per month is one of the largest in the world and clients include Honda, Toyota, and Nissan which have plants in India.
Japan is a close partner for Andhra Pradesh and the Andhra Pradesh Economic Development Board has been building resilient and sustainable partnerships with Japan. The state has attracted marquee investments like Isuzu Motors, NHK Springs, Kobelco, Nippon, THK, Toray Industries, Mitsui, and Mitsubishi.
Andhra Pradesh is also advocating for Japanese Industrial Townships and Japan India Institutes for Manufacturing to attract capital, as well as manufacturers to make in Andhra Pradesh.