Mitsubishi Materials to Improve Profitability by 100 billion yen in 5 years

Mitsubishi Materials expects 100 billion yen of higher profit in 5 years to fiscal 2009 ending March 2010 through the 230 billion yen of capital expenditure. The firm improves the profitability by annual 15 billion yen in the first 3 years through the expenditure for copper, metal processing, electronic materials and cement. The firm improves the profit by annual 31 billion yen in the 4th and 5th year.

The firm plans to expend 57 billion yen for copper business in 3 years. The firm expands the output of copper alloy for lead frame and connector from current 70,000 tonnes to annual 100,000 tonnes while the firm doubles the plating copper ball output to 40,000 tonnes.

The firm reduces the copper smelting cost by 15-20% by adding new Mitsubishi process furnace at Onahama smelter. The firm tries to expand the sales from 198,000 tonnes in fiscal 2006 to 293,000 tonnes in fiscal 2009 at P.T. Smelting in Indonesia.

The firm invests 33 billion yen for metal processing unit including 20% expansion of cemented carbide tool for 22 billion yen. The firm also expands the tungsten recycling from current 280 tonnes to 760 tonnes in fiscal 2009. The firm also expands the electronic materials, mainly for silicone for 40 billion yen. The firm expands the polycrystalline silicon output from 2,850 tonnes in fiscal 2006 to 3,300 tonnes and the silicon precision processing capacity by 50%.