KITZ to Integrate Domestic 2 Brass Bar Plants

KITZ Corporation announced on Tuesday the firm integrates its brass bar manufacturing subsidiaries, KITZ Metal Works Corporation and Kyoto Brass, on 1 July, 2009. KITZ Metal Works will absorb Kyoto Brass and, along this merger, brass bar production will be integrated into KITZ Metal Works’ Kayano plant, Nagano, Japan. Kyoto Brass’ plant in Kyoto, Japan will be closed. KITZ Metal Works is a 100% subsidiary of KITZ and Kyoto Brass is a 100% subsidiary of KITZ Metal Works.

KITZ took over Kyoto Brass’s operation in 2005 and Kicho Corporation’s operation in 2006. Kicho was another Japanese brass bar maker which voluntarily closed its business in 2006. Kyoto Brass inherited productive operation of brass bar with less than 8 millimeters diameter from Kicho.

Brass bar demand has plunged along global economy downturn since autumn 2008. Brass bar output by KITZ Metal Works and Kyoto Brass totaled approximately 3,000 tonnes per month in January 2009, lower by 40% from a year earlier. Less production led worse profitability. KITZ posted operating loss at 317 million yen in the copper rolled products business unit for 9 months of April-December 2008.

KITZ decided to integrate KITZ Metal Works and Kyoto Brass, and their plants, with forecast that brass bar demand couldn’t recover in a short term.