Mitsubishi Electric Metecs Withdraws from Wire Rod Business

Mitsubishi Electric Metecs, Japanese copper alloy fabricator, withdraws from wire rod business. The firm is in negotiations with customers to conclude wire rod production within fiscal 2010 ending in March 2011. The wire rod business has posted loss in recent years due to lower production volume than breakeven point. The firm aims to focus management resources into other growing businesses such as copper alloy strip.

Copper alloy wire rod is material for connectors, springs, split pins for insulators, snap buttons and so on. Mitsubishi Electric Metecs presently supplies phosphor bronze round wire rod and square wire rod, including plating service if needed. Wire rods are produced in Sagami plant, Kanagawa, Japan.

The current sale is approximately 160 million yen per year with loss. The recent production is 5-6 tonnes per month against the capacity of 14-15 tonnes per month. The output volume is lower than breakeven point.

Japanese phosphor bronze wire production peaked out from 167 tonnes in April 1988 and continued to decrease, according to Japan Copper & Brass Association. The production hit bottom at 24 tonnes in January 2009 and recovered to 100 tonnes in January 2010. However, after February, the production stays below 100 tonnes again.

Another factor is that Mitsubishi Electric Metecs produces phosphor bronze wire and MX alloy by a same melting furnace. MX alloy is the firm’s original copper alloy containing nickel and tin. The furnace’s productivity is expected to improve, designated to MX alloy production.