Nippon Mining & Metals to Expend 35 billion yen for Electronic Materials

Nippon Mining & Metals’ electronic materials unit plans to expend 35 billion yen under the 3 year plan to fiscal 2008 ending March 2009. The unit tries to expand the supply capacity for major products including sputtering target materials for semiconductor, liquid crystal and magnetic materials and rolled copper foil to meet growing the users’ business. The unit plans 17-18 billion yen of capital expenditure for fiscal 2006. The unit targets 15 billion yen of recurring profit with 150 billion yen of sales for fiscal 2008 through the aggressive expenditure. The unit allocates 50% of the 17-18 billion yen of budget for expansion of major products in fiscal 2006. The unit expends the 40% for target materials of semiconductor to expand output capacity of copper and tantalum wiring materials. The unit expends the 60% to expand output capacity of liquid crystal indium tin oxide and magnet materials target and rolled copper foil. The unit expands the ITO capacity by 30% to 40 tonnes per month while the unit expands upper stream operation at Isohara plant in Ibaraki in fiscal 2006 preparing for monthly 50 tonnes of capacity. The unit will expand the capacity to monthly 60 tonnes mainly in the upper stream operation after fiscal 2007. The unit also expands the rolled copper foil output capacity by 20% at Shirogane plant in Ibaraki. The unit shifts the electrolytic copper foil business to high valued special foil to cover higher raw materials cost while the unit tries to increase the selling price.