Sumitomo Metal Mining to Control Majority of Lead Frame JV with Hitachi Cable

Sumitomo Metal Mining and Hitachi Cable started talk to launch lead frame making joint venture. Sumitomo Metal Mining will control majority of the joint venture and Hitachi Cable makes the material copper strip at Tsuchiura plant, according to industry sources. They will consolidate their offshore production depending on the productivity.

They announced the consolidation talk of their lead frame businesses in March. Sumitomo Metal Mining, which now purchases material copper strip from third parties, will focus the material purchase to Tsuchiura plant through the joint venture.

Hitachi Cable has lead frame making plants in China, Malaysia, Singapore and Philippines while the firm closes Philippines plant by September. Sumitomo Metal Mining has the plants in China, Taiwan, Malaysia and Singapore. They select better productivity plants in China, Malaysia and Singapore and integrate the production into one plant in the countries.

World leading lead frame maker of Sumitomo Metal Mining apparently has more than 20% of the world market share. The firm tries to improve the profitability through the integration under historical high yen rate.