Mitsubishi Materials Aims World No.2 Share of Cemented Carbide Tool

Mitsubishi Materials sets a long-term aim to expand the consolidated sales of cemented carbide tools to 150 billion yen during next 3 years after present 3-year management plan started April 2007, which represents the secondly largest share in the world cemented carbide tool market. The firm estimates the sales of 100 billion for the cemented carbide tool business yen in fiscal 2007 started April. Mitsubishi Materials’ cemented carbide tool sales exceeded 70 billion yen 2 years ago, which equaled to world share of 10% at the time.Sandvik in Sweden is the world largest supplier of cemented carbide tools, whose sales of cutting tools were approximately 400 billion yen in 2006. Kennametal in the USA is supposed to be the secondly largest supplier, whose total net sales were approximately 270 billion yen in fiscal 2006 ended June 2006 and Mitsubishi Materials suggests 150 billion yen of which was accounted from cemented carbide cutting tools. Iscar in Israel is regarded as the thirdly largest supplier.Mitsubishi Materials posted consolidated net sales of 94.3 billion yen for the cemented carbide tool business in fiscal 2006 ended March 2007, up by 5% from fiscal 2005. The domestic sales increased by 5-6% and the offshore sales increased by about 10% compared with previous year. The domestic and offshore sales almost equaled in fiscal 2006.Mitsubishi Materials plans capital expenditure of 22 billion yen for the cemented carbide tool business during the 3-year management plan for fiscal 2007-2009 to expand its total tool output capacity by 20% compared with fiscal 2006. The firm will carry out capex of 10 billion yen in fiscal 2007 and expand the output capacity by 10% from fiscal 2006.