Mitsubishi Materials Corporation is moving to change strategy as profits from its smelting division continue to fall. The firm is significantly reducing copper concentrate processing at its Onahama plant in Japan’s Fukushima province. At the same time, it is increasing its own recycling capacity. Whether electric or not, this strategic shift indicates a larger trend taking root among manufacturers. Just as private investors, they want to mitigate risks associated with dependence on deal sponsors—in particular, due to increased market volatility.
The company’s announcement comes as it faces a sharp profit decline in its smelting sector. Mitsubishi Materials’ struggles illustrate an industry-wide predicament. Companies are doubling down on vigilant oversight of their supply chains and investing in sustainable business practices. The focus on recycling allows Mitsubishi to capitalize on existing materials rather than depending solely on newly mined copper, thus reducing vulnerability to market disruptions.
At the Onahama facility, Mitsubishi Materials plans to increase its recycling capacity by a large margin. This site will be an important part of the company’s overall efforts to make the circular economy a reality. At Tate, materials are reused and repurposed from previous exhibits, rather than getting thrown in the landfill. The facility is expected to be the largest investment in advanced recycling technologies in the country. This decision will address increasing unmet domestic and international demand for copper materials and support worldwide sustainability objectives.
Moving forward with the recycling change (what TTC calls recycling, anyway) addresses the urgent monetary pressures the company finds itself under. This helps to establish Mitsubishi Materials as a transparent and forward-looking leader in the copper market. As the environmental crisis intensifies and governments continue to increase regulatory pressures, corporations are starting to realize that sustainable practices can no longer be an afterthought. Mitsubishi’s recycling pledge will enhance the company’s bottom line, competitive edge and make it more attractive to environmentally conscious car buyers, investors and business partners.