Mitsubishi Shindoh to Start ECO BRASS Production in China

Mitsubishi Shindoh announced on Friday the firm established a joint venture company to produce foundry ingot of its original lead-free and free-cutting copper alloy, named ECO BRASS, in Qingdao, Shandong Province, China. The plant will supply ECO BRASS ingot to local manufacturers of drinking water server components for the shipment to U.S. market since new lead regulation on drinking water servers will start in the U.S.A. in 2012. The plant is now under construction. The production will start in December 2011 at 500 tonnes per month.

Capital fund of the joint venture company is US$ 10 million, 70% held by Mitsubishi Shindoh and 30% by the local partner, Hong Kong OCASTING. The plant will start commercial production and sales in December 2011 with melting and casting facilities. The output capacity is scheduled at 1,000 tonnes per month with 40 employees. The initial operation will be around 500 tonnes per month.

Hong Kong OCASTING is a local investing and trading company, invested by a local major stainless steel maker. Hong Kong OCASTING currently operates three production companies of stainless steel casting parts, automotive parts and aerospace casting parts in Shandong.

Mitsubishi Shindoh now produces ECO BRASS at Sambo plant in Japan. The firm supplies ECO BRASS to Chinese processors mainly casted bar applied to water taps used in the U.S.A. The new joint company is targeted to establish recycling system of ECO BRASS turning scrap for shorter delivery lead time and lower selling price.