Sumitomo Metal Mining Co. Ltd (SMM) has reached a policy decision at its Board of Directors Meeting to establish a new company to take over operations in the manufacture of crude zinc oxide currently performed by SMM Shisaka Plant located in Shisakajima, Miyakubo cho, Imabari shi, Ehime. The transfer of operations will occur in the form of a spin off effective 1 October 2010. SMM is currently performing operations in the manufacture of crude zinc oxide at its Shisaka Plant by recovering zinc from steelmaking dust produced by electric furnace manufacturers. However, sluggish growth in the volume of steelmaking dust collected is resulting in reduced production ratios and severe operating environment for Shisaka Plant. In order to address this situation, SMM will establish a new company dedicated to the manufacture of crude zinc oxide in the form of a spin-off, to forge a structure to respond with swiftness and mobility to severe changes in the operating environment. Through this reorganization, the company will collaborate more directly with MS Zinc Co. Ltd the consignee for the collection of steelmaking dust, for the fortification of raw material procurement capabilities.
