Optimized Production of Rolled Copper Products
Aurubis AG, copperproducer and international copper recycler, has initiated a
process to optimize and consolidate its production capacity for flat
rolled copper products. Aurubis plans to transfer production volumes from its Finspång
(Sweden) plant to other production sites in Europe and the United
States. The process is expected to be completed over a period of up to
two years.
“For several years we have observed a declining trend in the global markets
for copper and brass radiators. It is necessary for the Group to consolidate
production capacities in order to enhance its competitiveness in this
segment,” said Dr. Stefan Boel, Executive Board member in charge of the
Business Unit Copper Products.
Aurubis acquired the Finspång plant as a part of Luvata’s Rolled Products
Division as of 1. September 2011. Despite its high level of productivity and
excellent quality, Finspång has not generated any profit during the past years
due to the decline in its markets and the structural overcapacity in the rolled
products industry. Aurubis therefore plans to relocate the production
volumes, but only parts of the equipment from Finspång to its production site
in Zutphen (Netherlands). In addition, some production volumes may be
transferred to the Aurubis site in Buffalo (United States). The planned move
will enable Aurubis to consolidate production volumes, to improve economies
of scale and to reduce currency risks.
“We plan to keep production at full capacity until mid-2013. After that, we
would gradually reduce the production volumes in Finspang,” said Ari
Ingman, responsible for the Business Line Flat Rolled Products & Specialty
Wire at Aurubis. “We are fully committed to follow legal and customary
procedures in Sweden and to take proper care of the employees affected by
the planned decision. By starting consultation and providing information at
this early stage, we want to ensure that employees have adequate
transparency, that our customers will have a stable and reliable supply and
that all principles of social responsibility are applied.”
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