Sumitomo Metal Mining and Hitachi Cable announced on Thursday they start study to consolidate their lead frame business and rolled copper business except for copper tube. They try to conclude the agreement by September 2012. They try to seek consolidation synergy under slow demand for semiconductor.
Sumitomo Metal Mining makes lead frame at domestic plants in Ehime and Kagoshima and China, Taiwan, Malaysia and Singapore. Hitachi Cable makes lead frame at Yamagata, Malaysia, Philippines, China and Singapore. The firm also makes copper flat and strip products in Ibaraki while the firm already decided withdrawal from copper tube business. Hitachi Cable’s lead frame sales are estimated 12.5 billion yen for fiscal 2011 ending March 2012 while the rolled copper sales are estimated 66 billion yen. Sumitomo Metal Mining didn’t disclose results of lead frame business.Japan Steel Scrap Composite Prices (Sangyo Press)
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