Kobe Steel Eyes 5-10% Sales Recovery for Al & Cu Products in F2010

Mr. Ryusuke Hamanaka, an officer of Kobe Steel’s aluminium & copper business unit, explained at a press conference on Tuesday the firm’s sales volume of rolled aluminium products, copper fabricated products and forged products is estimated to increase by 5-10% in fiscal 2010 ending in March 2011 compared with fiscal 2009. He said the demand volume wouldn’t recover to the recent peak level in April-September 2008 but the business unit established the management form to generate profits even at 80% operation rate.

In fiscal 2009, the consolidated net sales decreased by 20.1% to 134.9 billion yen for aluminium rolled products compared with fiscal 2009. The sales lowered by 26.3% to 101.6 billion yen for copper fabricated products and by 31% to 22.5 billion yen for forged products. The total sales of the business unit shrank by 31% to 261.7 billion yen.

The sales volume of aluminium can materials decreased in and after October-December 2009 while the demand for automotive aluminium components upturned in and after July-September 2009. The shipment of rolled aluminium products also recovered for semiconductor and liquid crystal panel manufacturing equipment in and after October-December. As to copper and copper alloy products, sheet and strip sales maintained steady in and after July-September while copper tube demand stayed low mainly for air conditioners.

On the same day, Kobe Steel, Mitsui & Co. and Toyota Tsusho Corporation co-announced the companies concluded a joint venture contract for aluminium forging business in Suzhou, China. They will establish a production and sales company of aluminium forged products for automobiles in May 2010 and start the operation in August 2012. The capital fund is 1 billion yen, 60% shared by Kobe Steel with 25% by Mitsui and 15% by Toyota Tsusho. The employee number will be 50.