KUALA LUMPUR (Oct 28): Mitsubishi Materials Corporation will stop processing copper and copper alloy strips in Johor as part of reorganisation efforts at the Japanese smelting firm.

Ryoshindo Manufacturing Sdn Bhd, a wholly owned subsidiary, will cease slitting and sales of the products by March 2027, Mitsubishi Materials said in a statement on Wednesday. The number of staff affected or the associated costs were not disclosed.

Mitsubishi Materials said the decision is part of its efforts to “optimise its production and supply structure and strategically allocate management resources”.

Part of the Mitsubishi conglomerate, Mitsubishi Materials is an industrial behemoth that manufactures cement, non-ferrous metal products, electronic components, and precision industrial tooling.

In Malaysia, Ryoshindo Manufacturing serves as a supply base for the Southeast Asian market since its establishment in 1995.

Since then, however, the unit has been grappling with shifts in market conditions as well as tighter restrictions on scrap exports in Malaysia, prompting a comprehensive review of its supply network and resource circulation strategy.

“The group concluded that optimising its production and logistics functions would strengthen competitiveness, improve capital efficiency, and enhance corporate value over the medium to long term,” Mitsubishi Materials said.

Future supply, meanwhile, will come from its Wakamatsu plant in Aizuwakamatsu City, the company added.