Mitsubishi Materials Plans 250 billion yen Capex in 3 Years

Mitsubishi Materials announced its new mid-term management plan for fiscal 2007-2009 starting April 2007 which focused on aggressive capital expenditure at total 250 billion yen during 3 years. The firm plans capex at approximately 75 billion yen for output expansion and new product development in automobile, information technology, electronics, environment and recycle related business fields, except renewal and modernization of productive equipment. The firm will advance research and development in these business fields as well. The firm targets consolidated recurring profit at more than 100 billion yen in fiscal 2009 by technology bottom up in the Group.Mitsubishi Materials aims recurring profit at 28 billion yen for its copper related business unit in fiscal 2009. The recurring profit is estimated to decrease by 17 billion yen from fiscal 2006 since the firm expects copper price would decline to US 200 cents per pound in fiscal 2009. The firm tries to keep stable profits despite of lower level than fiscal 2006 by smelting cost reduction.In Japan the firm will expand the recycling business and introduce a new copper smelting furnace in Onahama smelter. At Indonesian copper smelter, the firm expects scale advantage by output volume expansion. As to the copper fabricating business, Mitsubishi Materials strengthens cooperation with its copper manufacturing subsidiaries. The firm plans capex at 57 billion yen for the copper related business unit during fiscal 2007-2009.Mitsubishi Materials targets recurring profit at 20.5 billion yen for the advanced material & tools business unit in fiscal 2009, up by 64% from fiscal 2006. The firm tries to expand sales of cemented carbide tools following the worldwide growth of automobile production. The firm also aims to increase sales of high-performance alloy products for industrial turbines, airplanes and automotive parts.For the electronic material business unit, the firm aims recurring profit at 26 billion yen in fiscal 2009. The firm plans 40 billion yen capex during fiscal 2007-2009 to expand output capacity of polycrystalline silicone and to strengthen new product development of electronic parts.