Kobe Steel’s Al, Cu Unit to Maximize Output under Power Cut

Kobe Steel’s senior managing director Tetsu Takahashi said on Tuesday the aluminium flat products making Moka plant shifts to power peak cut operation in July-September by operating between 9 pm and 10 am in weekday and operating weekend. The head of aluminium and copper business said through the operation the plant tries to keep around 85-90% level of production compared with same period of 2010 and tries to increase the production by improving the efficiency while major power users around Tokyo have to reduce power consumption by 25% during peak time in summer from same period of last year.

The plant operated around 80% level in April due to less availability of material in process after temporarily operation stop with the major earthquake. Mr. Takahashi expects the operation recovers 100% in May and June. He said the production will be more than 90% in the first half year to September by the new operation.

The group company of Kobelco &Materials Copper Tube shifts the operation to night time and weekend at Hatano plant. The plant stops a part of the lines including extrusion machine and reducers during daytime. The plant also eyes to add own electric generator to cover the power demand.

Mr. Takahashi said the aluminium and copper demand is still uncertain but the automobile demand is around 50-60% level compared with pre-quake level. He expects the demand could be 60-70% level through the first half year while the demand for other applications shows no major decrease so far. However, he expects the demand could decrease for air conditioner and hard disc drive due to limited availability of semiconductor in July-September.

Mr. Takahashi said the unit realized 10 billion yen of cost reduction in fiscal 2009 and 2010. He said the unit targets around 2 billion yen of cost down in fiscal 2011 while the lower operation rate could reduce the cost reduction effect.