Dowa Metaltech Plans High Operation for Cu Alloy Products in 2H

Dowa Metaltech, a metal processing company of Dowa Group, plans the output of copper alloy fabricated products at average 4,235 tonnes per month for the second half of fiscal 2009 (October 2009-March 2010). The output volume recovers to 89% level compared with 1H of F2008 when the demand was high. The firm expects the demand maintains steady from automobiles and semiconductors within F2009. The production is higher by 78% than 2H of F2008.

The output plan is 2,650 tonnes per month for copper based products, 1,350 tonnes per month for brass based products and 235 tonnes per month for the other copper alloy products such as nickel-copper produced at Dowa Metanix, Dowa Metaltech’s subsidiary. Output volume would recover to 90% for copper based products and 84% for brass based products compared with 1H of F2008. Output of nickel-copper products would increase by 26% from 1H of F2008.

Dowa Metal and Dowa Metanix, Dowa Metaltech’s operating companies, currently hold 2-month order backlogs despite of full production for automobiles and semiconductors. The companies’ production is estimated to keep high level for 2H of F2009.

Dowa Metaltech’s output of copper alloy fabricated products was average 3,300 tonnes per month in 1H of F2009, lower by 30% than 1H of F2008. Meanwhile, the production was actually higher by 17% than the initial estimation at 2,821 tonnes announced in May thanks to the demand recovery from automobiles and semiconductors. The production was 2,100 tonnes for copper based products, minus by 29% year-to-year, 1,000 tonnes for brass based products, minus by 38% year-to-year, and 200 tonnes for the other alloy products, plus by 7% year-to-year.