SMM Aims to Double Profits for Electronics Materials by F2009

Sumitomo Metal Mining’s electronic material division aims to double the business profit during the 3-year management plan by fiscal 2009 ending March 2010 compared with fiscal 2003, while SMM plans to expand the profits for the electronic and advanced material divisions by 30% to total 20 billion yen during 3 years to fiscal 2009. Etsu Senda, SMM’s executive officer, explained growth strategy for the electronic material division.SMM could not achieve profit target for the electronic material division in 3-year management plan for fiscal 2004-2006, which aimed to double the profit from fiscal 2003. Mr. Senda said the unit has several products which can continue sales and profits growth toward fiscal 2009 such as nickel paste and gallium phosphide. He explained multilayer ceramic condensers are more used for flat panel displays, game machines and cellular phones, into which nickel paste is used. He also pointed out gallium phosphide demand is recently increasing for high-intensity light emitting diodes.SMM seeks wider demand of the existing electronic materials toward fiscal 2009 by size change and function improvement of the products. Mr. Senda said the business unit seeks to develop nickel paste which can be adopted to higher capacitance condensers and thinner and stronger bonding wires when gold price stays high.Mr. Senda showed expectation for market growth of nickel paste and bonding wire. He expected world bonding wire market would grow by 5-6% per annum. As to gallium phosphide, for which SMM holds world top share, Mr. Senda said the unit aims to raise the share to 50% from current 40% during next 3 years.