Sumitomo to boost output

Sumitomo to boost output

TOKYO (AFP): Japan's Sumitomo Metal Industries Ltd. said yesterday it would boost aluminum output in Japan and Indonesia on the back of firm demand for home electronics components and construction materials in Asia.

Japan's third largest steelmaker said it planned to invest four billion yen (US$37 million) to boost cold-rolled aluminum output at a plant in northeast Tokyo to 30,000 tons, from the current 15,000 tons.

The new production lines are expected to be in full swing by early 1998, officials said.

They also said Sumitomo Metal's Indonesian joint venture, PT Maspion Stainless Steel Indonesia, would invest $60 million to build a new plant with annual capacity of 50,000 tons.

Sumitomo Metal has a 12.5-percent stake in the venture, with the Maspion group holding the balance, Sumitomo said.

The new plant will start production in July 1997 and aluminum produced will be marketed in Indonesia, it said.