Hitachi Alloy Seeks Sales Expansion for Brass Wire and Bar in F2010

Hitachi Alloy, a copper alloy fabricator of Hitachi Cable Group, revealed its management plan for fiscal 2010 starting in April at the distributors’ regular meeting held on January 15th. Hitachi Alloy aims to increase the wire division’s operating profit by 10-20% compared with fiscal 2009 through sales expansion of oxygen free copper wire and brass wire for electronic appliances or entry into the copper alloy wire market for semiconductors. The firm also plans the business restructures in order to regain the annual recurring profit in fiscal 2010.

Hitachi Alloy’s officer explained the firm’s annual sales volume of copper alloy fabricated products is likely to become 60-70% in fiscal 2009 compared with fiscal 2008. The firm aims to sustain the annual operating profit despite of low sales volume. The sales volume especially declined for brass wire rod applied to EDM machines and brass strip in the first half of fiscal 2009.

Hitachi Alloy recognizes the firm should expand the revenue size in order to gain profits in fiscal 2010. The firm tries to expand the sales for oxygen free copper wire, brass wire and copper alloy wire for electronic appliances and semiconductors. At the same time, the firm also seeks the sales increase for brass bar with less than 12 millimeters diameter and the organization of lead free brass bar (ECO BRASS) supply system.

Hitachi Alloy decided to produce brass bar with less than 12mm diameter in 2009 though the previous lineup was less than 6.5mm diameter. The firm introduced a new drawing machine to manufacture thicker brass bar. As to ECO BRASS, the firm expects the demand growth for lead free brass products in USA.