Kobe Steel’s Chofu Works Plans 4,000-5,000t/m Cu Fabrication in 2H

Kobe Steel’s Chofu works in Yamaguchi, Japan plans to produce copper alloy sheet and strip at average 4,000-5,000 tonnes per month for the second half of fiscal 2009 (Oct09-Mar10). The production would reach 80-90% level of the recent peak in the first half of fiscal 2008. Kobe Steel estimates the demand recovery continues from automotive connector pins despite of concerns about demand decline from semiconductors.

Chofu works’ current output of copper alloy sheet and strip is 4,300-4,400 tonnes per month, about 80% level compared with the first half of fiscal 2008. The half-year production is expected to total approximately 20,000 tonnes for April-September 2009.

Tetsu Takahashi, Kobe Steel’s senior managing director and president of Kobe Steel’s aluminum & copper company, explained the output recovered more than originally expected 70% level compared with the first half of fiscal 2008. Mr. Takahashi indicated Chofu works’ half-year production may reach 25,000-30,000 tonnes for the second half of fiscal 2009.

Chofu works’ production had been 5,600-5,800 tonnes per month by summer 2008 but the order receipts dropped down in and after autumn. The operating rate worsened to as low as 10% in March. Kobe Steel temporarily suspended rolling lines in no.2 factory of Chofu works and integrated the operation into no.1 factory. There 2 factories to manufacture copper alloy sheet and strip inside Chofu works.

Kobe Steel resumed no.1 factory in June along the demand recovery mainly from electronic applications.