Showa Denko Adjusts Rare Earth Production at Chichibu Plant

Showa Denko will extend the year-end and New Year holidays at Chichibu plant, Saitama, Japan, where the firm produces rare earth magnet alloys. The firm will halt the operation for 9 days, though the holidays are 2 days in usual years, to adjust the output with the weakening demand under economy recession.

Chichibu plant used to halt the operation on 31 December and 1 January in usual years. However, the plant will stop the production from 27 December, 2008 to 4 January, 2009. Rare earth magnet alloys are used for digital appliances and hybrid vehicles. The demand has increased especially for automobiles. Output capacity of Chichibu plant is currently 5,000 tonnes per annum.

The demand condition significantly changed after global financial crisis caused from US subprime loan problem. Automakers and other rare earth magnet users entered output reductions to follow the market downturn. Showa Denko has adjusted the rare earth magnet alloy production since September 2008. The firm might widen the output cut in 2009.

Chichibu plant covers production of rare earth magnet alloys and LED related items with about 270 employees.