Sumikei Copper Tube to Secure Domestic Tube Supply Ability

Sumitomo Light Metal Industries’ subsidiary, Sumikei Copper Tube in Aichi tries to expand local procurement at the offshore grooving base. The firm now exports almost all tube from Japan. The firm targets more than 50% of local procurement in 2 years. The firm tries to secure additional supply ability for domestic market while the local procurement improves the profitability under high yen rate.

The firm makes tube with groove for air conditioner at the headquarters plant. The firm has grooving plants in China and Malaysia. The firm exports monthly 600-800 tonnes or 70-90% of the requirement for the offshore plants.

The imported tube cost increases for the offshore plants under high yen rate. The local procurement will contribute to their profitability. The firm increases the local procurement and hopes more than 70% of local procurement rate in mid-term.

The lower tube export from Japan also contributes to additional supply ability for Japanese users when the supply is expected to get tight due to withdrawal by Hitachi Cable. Sumikei Copper Tube tries to keep stable supply for the domestic market.