Furukawa Electric to Downsize Domestic Copper Tube Plant Staffs

Furukawa Electric plans to reduce employees by 30-40% at its domestic copper tube plants until the end of March 2012. The employees will be transferred to other sections of the group’s copper alloy products division. Furukawa Electric has advanced optimization of domestic copper tube operations. The firm has already decided withdrawal from domestic production of low-profitability items. The firm downsizes the employee number for additional optimization and focuses management resources into growing items such as electrolytic copper foil.

Furukawa Electric will decrease the employee number at copper tube division’s plant in Amagasaki City, Hyogo, Japan to approximately 200 from present 300. The firm agreed in the optimization with labor union. The staffs will move to Furukawa Electric’s other plants for copper alloy products and copper foil in Nikko City, Tochigi, Japan.

Copper tube demand is decreasing in Japan since air conditioner makers have shifted their plants to overseas. Domestic copper tube production hit peak at 23,884 tonnes in April 1996 and shrank to 12,000 tonnes level per month. The demand temporarily recovered in 2010 thanks to hot summer. In 2011, the demand is likely to downturn again.

Furukawa Electric’s copper tube production was approximately 1,800 tonnes per month a few months ago. The firm eyes the output might decline to around 1,000 tonnes in a short term. The firm decreases the staff number in order to adjust the operation along the domestic market size. At the same time, the firm withdrew from production of standard-length copper tube coil and non-round copper tube in late 2010. The firm continues review of product mix.