Kobe Steel’s Al and Cu Rolled Product Output Decreases in 2H

Kobe Steel’s output of aluminium and copper alloy rolled products is estimated to decrease at Chofu works, Yamaguchi, Japan in the second half of fiscal 2008 (Oct08-Mar09) from originally planned. Chofu works’ production is expected to decrease by around 10% for aluminium extrusions and by around 5% for copper alloy sheets and strips in 2H from the original output plan at the beginning of F2008. The demand is rapidly declining from automobile industry.

Kobe Steel had planned to produce aluminium extrusions at average 4,000 tonnes per month and copper alloy sheets and strips at average 6,000 tonnes per month at Chofu works in 2H. The production is now expected at 3,600 tonnes per month for aluminium extrusions and 5,700 tonnes per month for copper alloy sheets and strips in 2H.

The main reason is automakers’ output reductions. The demand is remarkably weakening from automobile industry though the shipment of copper sheets and strips for semiconductor applications maintains stable.

Chofu works’ production of copper alloy sheets and strips still sustains the same level as a year earlier because there are order backlogs for automotive connector pins. However, these backlogs will be finished in December and the output volume might decrease by around 10% compared with the original plan in and after January.