Dowa Metaltech Defers New Furnaces Start to May 2009

Dowa Metaltech, a metal processing and plating company of Dowa Group, plans to start commercial operation of a new melting-casting furnace and a new annealing furnace in May 2009, those which were introduced in Dowa Metal’s plant. Dowa Metal is Dowa Metaltech’s subsidiary headed in Shizuoka, Japan to manufacture copper alloy products. The operation was originally scheduled to start within 2008.

Even though the demand for copper alloy products is sharply weakening due to slowdown of automobile and semiconductor markets, Dowa Metaltech decided to start commercial operation of the new facilities in May 2009 for the case the demand recovers. The firm started test operation of the new melting furnace this month.

Dowa Metal’s production capacity will increase by 3% to 4,500 tonnes per month from current 4,350 tonnes per month after the commercial operation of the new facilities starts.

Meanwhile, Dowa Metaltech continues to offer the rolling charge hike by maximum 10% against the customers during the second half of fiscal 2008 (Oct08-Mar09). The firm has tried to raise the rolling charge since April 2007 in order to cover higher productive costs for copper, nickel, tin and fuel. However, the hike is not fully approved by the customers yet.