DOWA Metaltech to Reduce Rolled Copper Output in 2H

DOWA Metaltech plans to reduce the rolled copper output by 3% to 4,770 tonnes per month in second half of fiscal 2008 compared with same period of last year. The firm decided the output cut when the demand decreases for automotive terminal connector and semiconductor lead frame.

The firm reduces the output by 3% to 2,870 tonnes per month for copper products in the second half from same period of last year. The firm keeps the output level at 1,720 tonnes for brass products. The production increases by 6% to 2,380 tonnes for products with reflow tin plating. The nickel and other alloy products output decreases by 18% to 180 tonnes.

The firm tried to keep the output in the second half as same period of last year but it forced to reduce the output due to severer demand drop than expected. Automobile output cut impacts on activity of the parts makers and materials makers. The firm expects the reflow tin plating production is in line with a year earlier level but the order level could decrease in and after November.

The firm expects the brass products output in the second half is in line with same period of last year. The firm sought the dealers to reduce the order for master coil of brass strip under booming demand in the first half. The firm tries to keep the lower sales for distributors under the policy to expand direct sales for the users.

The firm increased the rolled copper production by 10% to 4,746 tonnes per month in the first half from same period of last year while the output was lower than planned 5,000 tonnes.

See attached table.