October.16.2008
Business Alliance

Daiwa Can Company (President: Hisakazu Yamaguchi, Head Office: 2-1-10 Nihonbashi, Chuo-ku, Tokyo, hereafter “Daiwa-Can E and Universal Can Corporation (President: Takuo Ota, Head Office: 1-4-1, Koishikawa, Bunkyou-ku, Tokyo, hereafter “Universal Can E have reached an agreement of business alliance to cooperate in restructuring and intensifying production dispensation by means of reviewing production systems and utilizing existing facilities. Both companies aim to promptly react to day-to-day changing customer needs, to increase efficiency of business operations, to save operating costs, and to reduce environmental load while they maintain their competitive relationship in the industry.

Production Alliance for Can Ends

Recently, customer demand for diameter-reduced can ends has surged, in view of cost reduction as well as reduction of environmental load. This requires substantial investment by manufacturers. Meanwhile, profitability has deteriorated due to soaring material and energy costs, which can be a tremendous burden for each can maker. Under these circumstances, Universal Can holds its new investment in diameter-reduced can ends production; with Daiwa Can’s cooperation, the company is implementing restructuring of the production system for its intensification. In addition, these two can makers will consider cooperating to develop can ends with higher functionality, vital as regards resource saving and environmental responsiveness.

Production Alliance for Can Bodies

In the last few years, consumer need for can bodies has diversified, while overall demand has continuously decreased. Consequently, manufacturers have no option but to increase production efficiency. In terms of product quality and environmental responsiveness, to satisfy diversified customer and social requests, intensive and substantial investment is required. Considering the investment efficiency prospect, Daiwa Can holds a part of the can body production line; with the cooperation of Universal Can, it is sequentially shifting production to other plants, restructuring and intensifying its can body production system. Furthermore, both companies are engaged in joint examination of their production of can bodies so as to develop the most optimized production systems possible, including logistics.

In the aluminum can industry, the impact of higher material and energy costs is crucial. At the same time, can makers, as socially responsible entities, are allowed no delay in reducing environmental load. Under those circumstances wherein customers accelerate “business support, through competitor cooperation, to improve the business efficiency of suppliers, EDaiwa Can and Universal Can will actively react to customer trends, endeavor to enhance services to customers, and contribute to society through environmentally friendly products. The above alliances involve no capital tie-ups.

Daiwa Can is one of Japan's leading packaging manufacturers, with years of experience and technical expertise, supplying Japan's major beverage manufacturers with top quality containers and packaging solutions that take a creative, value-added approach in the marketplace. Daiwa Can is currently expanding its operations in the U.S. and Taiwan with the aim of becoming a global packaging enterprise.