DAIKI ALUMINIUM INDUSTRY CO.,LTD.
5702・Prime Market・Nonferrous Metals
Business
Daiki Aluminium Industry Co., Ltd. was founded in 1922 and, as a pioneer of Japan's secondary aluminium smelting industry, has a history spanning over 100 years. Its core business is the manufacture and sale of Secondary Aluminium Alloy Ingot produced by melting and refining aluminium scrap. In addition to four domestic plants (Kameyama, Shirakawa, Shiga, Yuki, etc.), the company operates 18 overseas subsidiaries centered mainly in Southeast Asia and South Asia, including Thailand, Malaysia, Indonesia, the Philippines, India, Vietnam, and China. Its main customers are automobile and transportation equipment manufacturers, and it also operates the Die-Cast Products Business and Aluminium Melting Furnace Business as complementary businesses. Consolidated net sales for FY2026 (ending March 2026) were ¥331,109 million.
Business Model
The company procures aluminium scrap from domestic and overseas affiliates and markets, processes it into Secondary Aluminium Alloy Ingot using proprietary melting and refining technology, and sells it to automotive and transportation equipment manufacturers. Since product prices are linked to LME aluminium market prices, managing the spread between scrap procurement costs and selling prices is key to profitability. By vertically integrating scrap procurement, processing, and sales within the group, the company internalizes its supply chain, and through local production at overseas facilities, it also responds to customers' local procurement needs.
Company Strengths
Founded in 1922 as Japan's first secondary aluminium smelting business, the company has accumulated melting and refining technology over more than 100 years. In addition to four domestic plants, it has manufacturing bases in seven overseas countries, and annual sales volume of Secondary Aluminium Alloy Ingot reached 478 thousand tons in FY2026 (ending March 2026). This scale and accumulated technology form a barrier to entry that competitors find difficult to replicate in a short period.
The company operates manufacturing and sales subsidiaries in Thailand, Malaysia, Indonesia, the Philippines, India, Vietnam, and China, with the group comprising 18 subsidiaries and 2 affiliated companies overall. At overseas locations, the company has been correcting sales prices and shifting materials, and its securities report notes that it is on a track toward earnings recovery in FY2026 (ending March 2026), achieving both risk reduction through geographic diversification and access to growth markets.
The company has built a framework for stable procurement of aluminium scrap from both domestic and overseas sources through group procurement companies such as Daiki Material and Daiki International Trading Corporation (U.S.). It also continues to invest in the development of raw material pretreatment technology, recording research and development expenses of ¥127 million in FY2026 (ending March 2026). Vertical integration from procurement through manufacturing and sales is the source of its raw material cost management capability.
ENVALITH's Perspective
Performance Trend
Net sales expanded over 40% across five fiscal periods, from ¥236,056 million in FY2022 to ¥331,109 million in FY2026 (ending March 2026). Meanwhile, operating profit declined from its peak of ¥20,376 million in FY2022, and stands at ¥7,268 million in FY2026, still in the process of recovery. In FY2026, a rise in LME prices as an external factor pushed up sales, with Secondary Aluminium Alloy Ingot (Products) up 3.8% year on year and Merchandise/Raw Materials, etc. up 22.1% year on year. Domestically, raw material costs continued to rise due to persistently high scrap prices, but solid product demand and improved profitability at overseas subsidiaries contributed to a 50.4% year-on-year increase in operating profit. Operating cash flow also turned positive, reaching ¥1,867 million after a significant deficit in the previous period.
Growth Strategy
「G&G（Global & Green）」を軸に、EV・HV向けリサイクル合金の需要取り込みとアジア拠点強化を通じて2030年を目指す成長戦略
Promoting price corrections and material conversion at overseas locations in Thailand, India, and elsewhere. Management has indicated that earnings are moving toward a recovery trajectory in FY2026 (ending March 2026). The company targets net sales of ¥386,700 million in FY2027 (ending March 2027) and will continue to capture overseas demand.
Advancing improved sorting precision for aluminium scrap and building a procurement system responsive to price fluctuations. To secure profitability even amid persistently high scrap prices, the company continues to diversify procurement of low-carbon raw materials and implement material conversion.
Positioning the expansion of demand for aluminium weight reduction driven by the shift to electrification as a medium- to long-term growth opportunity. The company is building a supply system for recycled alloys for hybrid vehicles, EVs, and fuel cell vehicles, responding to the electrification trend in the automotive industry. Intensifying competition in the EV market and shifting subsidy policies continue to produce differing effects by region and vehicle type.
Last updated: July 19, 2026