Furukawa Electric to Expand Copper Strip Output Capacity

Furukawa Electric will expand output capacity for copper strip and plating by fiscal 2009 ending March 2010 with 8 billion yen of total investment. The firm plans to expand copper strip output capacity from current 3,500 tonnes to 4,500 tonnes per month by renewal of old facilities and introduction of additional equipment at Nikko plant in tochigi Prefecture, Japan. The firm will strengthen plating equipment as well and establish integrated productive system for copper strip at Nikko plant, while the firm will also increase plating capacity at Mie plant in Mie Prefecture, Japan. The firm aims to expand supply capacity for alloyed copper strip whose demand is increasing for connector and lead frame. Metals company of Furukawa Electric targets 9.7 billion yen of operating profit for fiscal 2009, which doubles from fiscal 2005.Furukawa Electric plans to introduce a finishing mill, a continuous annealing furnace and a slitter at Nikko plant toward the end of fiscal 2008, starting operation within fiscal 2009 and entering full production in fiscal 2010. The firm plans to improve the layout of productive equipment and renew old facilities at Nikko. The firm will increase plating lines of precious metals such for gold from current 1 to 4 toward fiscal 2009 and establish a coil center in the plant as well. Nikko plant will hold integrated productive system for copper strip from casting to processing after the expansion. Furukawa Electric carries out large scale capital investment for Nikko plant for the first time in late 25 years.At Mie plant, the firm will introduce another reflow tin plating line which targets auto related products in summer 2006, while there exists one line at the plant, and double the output capacity from current 350 tonnes to 700 tonnes per month. Furukawa Electric continues full production of alloyed copper strip whose demand is active for connector pin of auto parts and lead frame to mount IC chip. The firm expects 5% of yearly growth for alloyed copper strip market in near future. Demand for tin plated copper strip is also increasing sharply for automobiles and semiconductors.