Kobe Steel Halves Operation of Cu Sheet and Strip in Chofu

Kobe Steel has suspended operation of a copper sheet and strip factory in Chofu works, Yamaguchi, Japan, explained Ryusuke Hamanaka, a general manager of Kobe Steel’s aluminum & copper company, at a press conference on 12 May. There are 2 copper sheet and strip factories inside Chofu works. Kobe Steel’s copper sheet and strip production is almost halving compared with the recent peak. The firm stopped operation of one factory in March to improve productivity.

Mr. Hamanaka said the firm will restart the operation when the demand recovers. As long as the demand volume keeps the current level, Mr. Hamanaka said, one-factory operation will be prolonged.

Kobe Steel’s copper sheet and strip sales were approximately 66,000 tonnes per year in fiscal 2006 (Apr06-Mar07) and fiscal 2007. The firm had kept full production to meet strong demand from automobiles and electronic materials. The demand plunged along economy deterioration since autumn 2008. The firm’s copper sheet and strip sales dropped to around 500 tonnes per month in March 2009. The annual sales decreased by 27.2% to 48,400 tonnes in fiscal 2008 from fiscal 2007.

Kobe Steel plans the sales at 33,500 tonnes for fiscal 2009, down by 30.8% from fiscal 2008. The sales are currently recovering to around 3,000 tonnes per month.