According to Mitsubishi Materials Corporation’s recent moves in its operational strategy, the company is moving big steps as it cut back on copper concentrate processing. The company has admitted it is suffering a massive profit loss tsunami through its smelters business line. In response, it is investing to expand recycling capabilities at its Onahama facility. This move is particularly noteworthy as it reflects the company’s response to market pressures and the need for sustainable practices.
The Onahama facility, located in Fukushima prefecture, Japan, will be at the heart of Mitsubishi Materials’ global strategy. Global demand for copper is rising rapidly. As the company prepares to go public, it aims to leverage its unique recycling operations to mitigate other risks associated with volatile prices and supply chain disruption. By prioritizing recycling, Mitsubishi Materials expects to strengthen profitability as it seeks to catch up with sustainability developments worldwide.
The impetus for reducing copper concentrate processing comes from a dramatic profit downturn in the smelting industry. Yet in recent months as margins have fallen, hitting net income, the company has begun to realize it needs a new business model. The leadership team at Mitsubishi Materials have pegged recycling as a more cyclical, less the boom and bust of the resource industries, path for expansion. The Onahama facility is well-prepared to assume a key position in this transition. Additionally, it will allow the firm to use recycled materials and reduce its raw copper import dependence.
Mitsubishi Materials’ strategic pivot is part of a larger story unfolding across the industry, as companies become more serious about sustainable efforts. The company partners with and invests into recycling infrastructure to continue to set the standard in resource efficiency. This action is a step to meet the increasing consumer demand for responsibly sourced materials.