Mitsubishi Materials Reorganizes Cemented Carbide Tool Business

Mitsubishi Materials reorganizes its cemented carbide tool business. The firm examines consolidation of production and sales sites worldwide and withdrawal from some items such as PCB drills (drills to make halls for printed circuit boards). Details are now under discussions. The firm optimizes productive cost and efficiency when global demand for cemented carbide tools has dropped down along automobile industry’s downturn.

Mitsubishi Materials also reviews when to start new factories in Tsukuba plant, Ibaraki, Japan and Japan New Metals’ Akita plant, Japan. Mitsubishi Materials announced capacity expansion plans for indexable insert and tungsten powder in February 2008. The firm planned to increase indexable insert capacity by 40% in Tsukuba plant and tungsten powder capacity by 15% in Akita. The firm has constructed a new factory building at each site to start commercial operation by March 2010.

As to PCB drills, a concerned player said Mitsubishi Materials is recently clearing its PCB drill inventory to withdraw from the market around September 2009. Mitsubishi Materials officially commented the withdrawal hasn’t been determined yet which is still under discussions. The business site integration plan is also discussed yet.