Mitsubishi Materials to Cut Cu Output by 10% in and after Feb

Mitsubishi Materials and the group companies reduce their productions. Mitsubishi Materials announced on 13 February the firm decrease its electrolytic copper output by 10% in and after February. Copper demand is sharply declining along the global economy downturn. At Mitsubishi Shindoh, a copper and copper alloy fabricator of Mitsubishi Materials group, the production volume is decreasing by 60% against the full capacity in Wakamatsu plant, Fukushima, Japan. Mitsubishi Shindoh implements additional output reduction. Japanese major 3 copper smelters, including Mitsubishi Materials, will decrease their electrolytic copper output by total 5% in the second half of fiscal 2008 (Oct08-Mar09) from their initial plans.

Mitsubishi Materials supplies electrolytic copper to the fabricators, about 70% of which is for the group companies such as Mitsubishi Shindoh and Mitsubishi Cable Industries. Mitsubishi Shindoh’s current production volume is declining to about 40% from a year earlier. Mitsubishi Materials decided to lower its electrolytic copper operation by 10% from the initial plan when the demand is even worsening.

The output reduction will be implemented at Naoshima smelter, Kagawa, Japan, Onahama smelter, a jointly invested smelter in Fukushima, Japan, and Gresik smelter in Indonesia in and after February. The method and term of the output cut are examined within this month. At the same time, the firm may enhance the furnace repairing schedule at Naoshima smelter or widen the output reduction range.

Mitsubishi Materials originally planned to produce electrolytic copper at 98,000 tonnes in Naoshima and 44,000 tonnes in Onahama during the second half of fiscal 2008. By lowering the operations by 10% in and after 10%, the firm’s copper production will decrease by 3-4% for 2H of F2008 from the original plan. Copper production at Gresik totaled 142,000 tonnes during July-December 2008.