Sumitomo Light Metal Selects Purchase Cu Tube Facilities from Hitachi Cable

Sumitomo Light Metal Industries is completing to select purchasing copper tube making facilities from Hitachi Cable. Sumitomo Light Metal Industries transfers the facilities by March end when Hitachi Cable withdraws from domestic copper tube business. Sumitomo Light Metal Industries starts operation of the purchased facilities in April to serve domestic buyers. The firm apparently increases the production capacity by more than 20% from near 4,000 tonnes per month.

They agreed to start talk for the copper tube production facility transaction in October 2011. Sumitomo Light Metal Industries eyed to purchase downstream facilities from Hitachi Cable when the production capacity would be short for the demand after Hitachi Cable’s withdrawal.

Sumitomo Light Metal Industries purchases mainly facilities to make inner grooved copper tube for heat exchanger of air conditioner. The firm purchases grooving machine, annealing furnace and winding machine.

Sumitomo Light Metal Industries’ copper tube making subsidiary, Sumikei Copper Tube started work to secure space for the facility from end of December. The firm keeps normal operation while the firm accepts the new facilities from Hitachi Cable’s Tsuchiura plant by end of March. Sumikei Copper Tube accepts remaining facilities in August.

Sumikei Copper Tube has around monthly 4,500 tonnes of production capacity but the maximum production is near 4,000 tonnes at current workforce. The firm could increase the workforce preparing for the expansion.