KMCT Raises Copper Tube Output Capacity by 10% in Thailand

Kobelco & Materials Copper Tube (KMCT), a copper tube manufacturing joint venture between Kobe Steel and Mitsubishi Materials, will raise output capacity of Kobelco & Materials Copper Tube (Thailand), a 100% subsidiary in Thailand, by 10% to 30,000 tonnes per year in 2011. KMCT has progressed conversion and addition of productive facilities at KMCTT since 2008 with total 1.2 billion yen investment. Thailand has been an exporting country of air conditioners to Europe while, in recent years, domestic and regional demand for air conditioners has also grown.

KMCTT converted rolling machines while newly introduced a finishing pullblock, a spooler and 5 grooving machines. The finishing anneal furnace will be also expanded for better productivity. The construction is scheduled to complete in late December. New facilities will start operation in January 2011. KMCTT’s output capacity will increase to 30,000 tonnes per year from present 27,000 tonnes.

Air conditioners produced in Thailand have been mainly exported to Europe so far. Meanwhile, demand for air conditioners has grown in Thailand and surrounding Asian countries in recent years. Copper tube is one of components for air conditioners and the demand is increasing in the region. KMCTT’s production was average 2,300 tonnes per month for January-June 2010, increasing by about 50% from the same period of 2009.

KMCTT will follow the growing demand by full operation of new facilities. At the same time, KMCT examines next capacity expansion at KMCTT.