SEI Optimizes Production of Industrial Material and Magnet Wire

Sumitomo Electric Industries (SEI) revealed to optimize domestic production of Industrial Materials, including cemented carbide tools, special steel wires and sintered parts. These products are consumed mainly in automobile industry. The sales and profits rapidly worsened since the second half of fiscal 2008 (Oct08-Mar09). SEI decided to adjust the domestic operation to the current demand level for cost cut within fiscal 2009. SEI also advances optimization of offshore magnet wire production.

SEI revealed to shift insert chip production at Itami works, Hyogo, Japan to its subsidiary in Hokkaido, Hokkaido Sumiden Precision Industries. The production of CBN (cubic boron nitride) tools at Itami will be transferred to Kyusyu Sumiden Precision Industries in Saga Prefecture. Oil temper wire production in Itami works will be shifted to Hokkaido Steel Wire. As to saw wire, the plating process will be integrated into Sumitomo Electric Tochigi. Sintered parts production, limited for ordinary parts, will be integrated into Okayama plant of Sumitomo Electric Sintered Alloy from Itami plant.

As to magnet wire, SEI revealed to withdraw from the productive operation in Singapore. The production will be transferred to Malaysian site where the operation cost is lower than Singapore. Magnet wire demand dropped such for motors inside automobiles and electric appliances. SEI has already decided to withdraw from magnet wire production in USA and shift the operation to Asian countries as well.