Sumitomo Metal Mining Brass & Copper to Expand Rolled Copper Output in 2H

Sumitomo Metal Mining Brass & Copper plans around 1,800 tonnes per month of rolled copper production in second half year to March 2010, which represents around 90% of the capacity. The production is higher than original plan of 1,600 tonnes. The firm increases the production to meet higher demand for automobile and flexible printed circuit since May while the production decreased to as low as 500 tonnes per month. The higher production contributes to around 50 million yen of recurring profit for the year ending March 2010 compared with 600 million yen of loss in fiscal 2008.

The production decreased to as low as 500 tonnes per month at Mie plant in second half year to March 2009 after the production reached around 2,000 tonnes in the first half year. The averaged production was around 1,100 tonnes in fiscal 2008. The production increases since April and reached 1,600 tonnes in July. The firm restarted one of three continuous casters preparing for higher production.

The higher production is mainly due to higher automobile production when the application represents more than half of the firm’s shipment including indirect shipment for automakers. Higher digital devices demand in China also contributes to the higher rolled copper foil production.

The firm plans to make monthly 600 tonnes of reflow tin plating products in the second half of fiscal 2009, which is 2.4 times of same period of fiscal 2008 level. The production will increase by 20% to 600 tonnes for brass strip, by 60% to 400 tonnes for brass bar and by 2.5 times at 200 tonnes for rolled copper foil.