Mitsubishi Materials Corporation, based in Japan, plans to reduce copper concentrate processing at its Onahama Smelting and Refining facility in Iwaki City, Fukushima Prefecture, to address challenging market conditions and improve profitability. The company aims to increase the use of recycled materials, responding to a significant decline in treatment and refining charges for copper concentrates, which has created an uncertain outlook for its smelting operations.

The company has highlighted a significant downturn in the external environment for its copper smelting business, particularly with TC/RC for copper concentrates.

The strategy includes partially halting production facilities at Onahama following scheduled maintenance between October and November 2025. This shift will prioritize raw materials less affected by market fluctuations, maintaining the processing volume of electronic scrap, such as discarded circuit boards, to boost the proportion of recycled materials and enhance financial performance.

At the Naoshima Smelter and Refinery in Naoshima Town, Kagawa Prefecture, Mitsubishi Materials has adjusted its 2024 investment plan to limit the expansion of copper concentrate processing capacity while increasing the capacity for electronic scrap processing. The company continues to advance the renewal and expansion of certain production facilities to support operational efficiency.

Additionally, Mitsubishi Materials is preparing to integrate its Sakai and Sambo plants in Sakai City, Osaka Prefecture, by April 1, 2026. This move aims to optimize production systems and drive growth in the Copper & Copper Alloy business. The Sakai Plant produces billets and cakes, which are further processed at the nearby Sambo Plant, fostering close collaboration within the value chain. The integration will streamline operations, improve manufacturing efficiency, and reduce production lead times.

Murray Davies, a representative from Four Zeros, stated: “Partnering with Vergia provides the technical depth and financial strength required to accelerate the commercial rollout of green-hydrogen projects in the UK.” This quote, though unrelated to Mitsubishi Materials, reflects a similar emphasis on strategic partnerships to enhance operational outcomes, as seen in Mitsubishi’s efforts to strengthen its production systems.

By focusing on recycled materials and integrating key facilities, Mitsubishi Materials seeks to enhance business agility and ensure long-term sustainability in its copper operations across Fukushima, Kagawa, and Osaka prefectures. These efforts align with the company’s goal of adapting to market challenges while maintaining a commitment to efficient and environmentally conscious production practices.