Ahresty Plans Move Up to TSE’s First Section to Accelerate Foreign Operations

Japanese major die casting maker, Ahresty Corporation, plans the move up to the first section of Tokyo Stock Exchange (TSE) from the second section of TSE in which the company is presently listed. Ahresty tries to strengthen the money raising capability from the stock exchange and to accelerate die cast production in emerging countries. Ahresty projects output capacity expansion at the existing offshore plants with approximately 30 billion yen of accumulative investment for next 3 years, excluding the capex for molds. The company also eyes establishment of new offshore plant toward 2015.

Ahresty’s president Arata Takahashi explained stock price discounting rate is high at TSE’s second section and Ahresty feels disadvantage in money raising from the stock exchange market。 Ahresty starts preparation for the move up to TSE’s first section when the company is being qualified with the terms。 Mr。 Takahashi didn’t suggest the time schedule for the move up。

Ahresty plans die casting sales expansion mainly in emerging countries where car markets keep healthy growth。 The company will raise production capacity largely at the existing 2 Chinese subsidiaries in China and the subsidiary in Mexico with total 10 billion yen capex in fiscal 2012 ending in March 2013。 The firm plans additional 11 billion yen annual capex in fiscal 2013 mainly in Mexico and China。 Mr。 Takahashi explained 7 billion yen capex is already decided for fiscal 2014 while the investment may increase to 10 billion yen along with the customers’ conditions。

Ahresty also projects establishment of new production sites in emerging countries。 The company will define the countries to construct new plant by judging conditions of customers, local markets and competitors。 Mr。 Takahashi indicated one plant’s yearly revenue would reach 5 billion yen and Ahresty might establish 1-2 new productive sites within next 5 years。 The investment is planned at 3-5 billion yen for each site。