Kiyomine Metal Industry Eyes Demand Recovery for Phosphor Bronze in F2012

Ibaraki based phosphor bronze and nickel silver maker, Kiyomine Metal Industry aims slight rebound of annual revenue and operating profit in fiscal 2012 ending in March 2013. Annual revenue target is 6 billion yen with 200 million yen of operating profit. The firm could not achieve planned revenue and profit in fiscal 2011 due to the demand deterioration in the second half year. The demand for phosphor bronze is hitting bottom currently.

Kiyomine Metal Industry posted 3% year-to-year lower annual revenue at 5.85 billion yen in fiscal 2011. The operating profit slightly decreased to less than 200 million yen. The demand was stable in the first half year while sharply dropped for phosphor bronze applied to connectors in the second half year when electronics industry totally slowed down. The annual sales volume decreased by around 10% in fiscal 2011 from the previous fiscal year.

Phosphor bronze sheet and strip production in Japan hit bottom at 2,570 tonnes in February. The production continued to increase for March to May, according to Japan Copper and Brass Association. In May, the production seemed to exceed 3,000 tonnes for the first time in a half year. Kiyomine Metal Industry also expects for the year-to-year sales recovery in fiscal 2012.

Sales volume of the company’s high strength phosphor bronze KA1025 has steadily increased though market demand still maintains weak for other phosphor bronze. KA1025 is adopted to connectors for thin electronic devices or spring material for auto focus system inside digital steel cameras and smart phones. The present output is 10-15 tonnes per month. The firm tries to increase the output to 20 tonnes within fiscal 2012.