Japan’s Mitsubishi Materials Corporation is considering “scaling down” copper concentrate processing at its Onahama Smelting and Refining facility in Iwaki City, Fukushima Prefecture.

This initiative is in response to deteriorating market conditions and the need to enhance profitability by increasing the use of recycled materials.

The company has highlighted a significant downturn in the external environment for its copper smelting business, mainly in relation to treatment charges and refining charges (TC/RC) for copper concentrates.

It now has an “uncertain” outlook for the smelting business, projecting a “decline” in profitability.

The scale down strategy involves partly halting production facilities after scheduled maintenance between October and November this year, with the goal to shift towards raw materials less impacted by TC/RC fluctuations.

While the processing of copper concentrate is set to decrease, the treatment volume for electronic scrap (E-Scrap), such as discarded electronic circuit boards, will remain constant. This move is intended to raise the proportion of recycled materials used and, consequently, improve profitability.

At the Naoshima Smelter & Refinery in Naoshima Town, Kagawa Prefecture, the company has revised its 2024 investment plan.

The policy aims to limit the increase in copper concentrate processing capacity while boosting the capacity for E-Scrap processing. In the meantime, the renewal and expansion of certain production facilities are still progressing steadily.

Additionally, preparations are under way for the integration of the Sakai and Sambo plants in Sakai City, Osaka Prefecture, with the goal of optimising production systems and accelerating growth in the Copper & Copper Alloy business. This integration is scheduled for 1 April 2026.

The Sakai and Sambo Plants have been closely linked within the Copper & Copper Alloy business value chain, with the Sakai Plant casting billets and cakes for further processing at the Sambo Plant.

Despite each site developing its own operating systems, their proximity has facilitated collaboration.

The upcoming integration is set to advance this cooperation further, aiming to enhance business agility and flexibility.

By strengthening the integrated production system from casting to processing, Mitsubishi Materials seeks to enhance manufacturing efficiency and reduce production lead times.