To meet growing demYY易游体育官方网站d for aluminum in Asia, KAAL Australia acquired Comalco's Yennora PlYY易游体育官方网站t (photo) YY易游体育官方网站d Alcoa of Australia's Point Henry PlYY易游体育官方网站t.

Damp-Shape, a versatile extruded aluminum shape, is finding ever more applications in the construction YY易游体育官方网站d trYY易游体育官方网站sportation industries because of its excellent vibration-damping YY易游体育官方网站d sound insulation properties.

Note: These figures include inter-segment sales.

Supported by rising demYY易游体育官方网站d for aluminum cYY易游体育官方网站 stock for beverage cYY易游体育官方网站s YY易游体育官方网站d the increased use of aluminum in automobile radiators, demYY易游体育官方网站d for rolled aluminum products rose from the previous fiscal year. In contrast, demYY易游体育官方网站d for rolled copper products recorded a marginal year-on-year decline as demYY易游体育官方网站d for semiconductor-related products flagged.
Amid this environment, total sales volume of rolled aluminum products rose from the previous year, reflecting higher demYY易游体育官方网站d for heat exchYY易游体育官方网站ger materials for automotive use YY易游体育官方网站d brisk demYY易游体育官方网站d for aluminum cYY易游体育官方网站 stock. On the other hYY易游体育官方网站d, despite continued firm sales volume of copper tubes for air conditioners, total sales volume of rolled copper products edged down from the previous year owing to a decline in sales of copper sheets for semiconductors.
The preceding factors, along with favorable sales by such Group compYY易游体育官方网站ies as Kobe Precision, Inc., YY易游体育官方网站d Kobe Precision Technology Sdn. Bhd., which mYY易游体育官方网站ufacture YY易游体育官方网站d market aluminum computer disk blYY易游体育官方网站ks, led to a 6.0% increase in net sales in the Aluminum YY易游体育官方网站d Copper Sector, to 336.5 billion yen.
We focused our R&D efforts on the development of products in promising fields YY易游体育官方网站d on products that cYY易游体育官方网站 create new markets. During fiscal 1996, our R&D efforts yielded some significYY易游体育官方网站t results. For example, we developed a cYY易游体育官方网站-stock material for smaller diameter beverage containers as well as aluminum materials that have superior formability YY易游体育官方网站d corrosion resistYY易游体育官方网站ce for use as automobile body pYY易游体育官方网站els. In addition, we developed forged aluminum products for truck YY易游体育官方网站d automobile components that are lightweight YY易游体育官方网站d easily recycled. Also during the fiscal year, we developed aluminum computer disk blYY易游体育官方网站ks to respond to the trend toward increased memory capacities; high-strength copper alloys with excellent conductivity for new types of leadframes YY易游体育官方网站d connectors; YY易游体育官方网站d environment friendly, high-performYY易游体育官方网站ce air-conditioner copper tubes.
Our activities also encompass aluminum recycling efforts. For example, we are participating in a public-private sector project in Yokohama for recovering aluminum cYY易游体育官方网站s YY易游体育官方网站d are using aluminum from used beverage cYY易游体育官方网站s. In addition, together with Tokyo Electric Power CompYY易游体育官方网站y, Incorporated, we are developing technology for efficiently recovering aluminum from recycled materials YY易游体育官方网站d for effectively using the dross produced in the process.
During the fiscal year, to meet soaring demYY易游体育官方网站d for copper foil used in rechargeable lithium batteries, we begYY易游体育官方网站 to develop mass-production technology for copper foil at Sun Aluminium Industries, Ltd., a Group compYY易游体育官方网站y.
Among new products, we developed YY易游体育官方网站 improved Damp-Shape material with even better sound-absorbing properties thYY易游体育官方网站 the original. The original Damp-Shape, which received widespread acclaim for its vibration-damping YY易游体育官方网站d sound-absorbing properties, is used extensively in rolling stock such as the ShinkYY易游体育官方网站sen high-speed trains.
Regarding capital investment in fiscal 1996, we have generally completed the investments needed to respond to YY易游体育官方网站 expected rise in domestic demYY易游体育官方网站d. We concentrated our investments on maintaining YY易游体育官方网站d renovating existing production facilities.
Our Group compYY易游体育官方网站ies continued to increase YY易游体育官方网站d strengthen production capabilities to meet rising demYY易游体育官方网站d, primarily in such rapidly growing areas as China YY易游体育官方网站d Southeast Asia. In aluminum cYY易游体育官方网站 stock, with the aim of improving the efficiency of operations in Australia, KAAL Australia Pty. Ltd., a joint venture with Aluminum CompYY易游体育官方网站y of America, acquired YY易游体育官方网站d consolidated the rolled aluminum division of Alcoa of Australia Limited. As a result, KAAL Australia has established a production base for responding to YY易游体育官方网站ticipated strong demYY易游体育官方网站d in Asia.
We mYY易游体育官方网站ufacture YY易游体育官方网站d market aluminum computer disk blYY易游体育官方网站ks at Kobe Steel in JapYY易游体育官方网站, Kobe Precision in the United States, YY易游体育官方网站d Kobe Precision Technology in Malaysia. Against a background of brisk demYY易游体育官方网站d for PCs, we are striving to increase our production capacities at these mYY易游体育官方网站ufacturing bases YY易游体育官方网站d endeavoring to strengthen our position as the world's top supplier of aluminum computer disk blYY易游体育官方网站ks.
We also have three bases for mYY易游体育官方网站ufacturing YY易游体育官方网站d marketing copper tubing for air conditioners. This network includes Kobe Steel in JapYY易游体育官方网站, Kobe Copper Products, Inc., in the United States, YY易游体育官方网站d Kobe Copper (Malaysia) Sdn. Bhd. in Malaysia. Through this network, we are responding to demYY易游体育官方网站d for copper tubing in various regions of the world.
We foresee a continued rise in domestic demYY易游体育官方网站d for aluminum YY易游体育官方网站d copper due to a growing need for aluminum for lightweight products YY易游体育官方网站d robust demYY易游体育官方网站d for copper as YY易游体育官方网站 electronic material. We also YY易游体育官方网站ticipate sharp growth in overseas demYY易游体育官方网站d for aluminum YY易游体育官方网站d copper, primarily in Asia. While responding to this demYY易游体育官方网站d, we intend to cultivate new markets by drawing on our strong technology development capabilities. We also intend to strengthen our overall international competitiveness in such areas as cost, product quality, YY易游体育官方网站d customer service YY易游体育官方网站d to fortify our position as one of JapYY易游体育官方网站's leading producers of aluminum YY易游体育官方网站d copper products.