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Aurubis said that demand for its products bottomed in April and showed some recovery signs in May. As a result of weakening demand in Q1, the company cut copper wirerod output by 25% to 168,000t. The company planned to cut working hours in its copper wirerod plant in Hamburg but the measure was not implemented as demand strengthened. Luvata reported that its copper semis sales contracted on average by 25% y-o-y in Q1. The worst hit end-use sectors were the automotive and construction industries, which plunged by 40% y-o-y in Q1. In response to the economic crisis, the company has cut production in the US, Europe and China. Both Aurubis and Luvata said that as their customers have kept stocks to a minimum the market now experiences stabilisation. Luvata highlighted that its recent demand increase may be only the result of restocking. Also, extended summer holidays will impact this rebound.

Luvata, the UK-based manufacturer of copper semis, expects demand for its products in the US and China to expand by 5% in 2013, according to Chief Executive John Peter Leesi. In an interview with Bloomberg, the Chief Executive said that residential and commercial construction is very important to Luvata and that an improvement in these sectors in the US was boosting demand. Luvata also expects a pickup in demand for copper tube as the air conditioner sector in China expands in 2013, after a poor year in 2012. On Europe, Luvata expects "flat-to-small growth" in demand in 2013.

Luvata, a copper semis fabricator, believes that even though destocking in the copper supply chain is over, a significant rise in demand is not anticipated until mid-2010. The company expects that Asia will be the first region to recover, followed by North America and Europe. As a result of destocking, Luvata has got used to operating at a lower level of stock, and therefore became more efficient in its production procedures. The company intends to keep operating at lower stock levels even in periods of growth. While demand before the summer showed some recovery signs, the company is now waiting for the autumn to see whether the positive trend will continue.

Aurubis AG, the Germany based copper producer and semi-fabricator, is expected to acquire Luvata RPD, the rolled products division of Luvata Group, in August 2011 following the companies' announcement that an acquisition agreement has been reached. Aurubis will pay the Net Working Capital of Luvata RPD at the time of closing, anticipated to be between EUR200 - 250M.

Luvata said that it will restart idled capacity in Europe and the US in 2010. The decision is based on the slow but steady recovery that the company is experiencing on a monthly basis. It was reported that the Chinese plants that make air con tubes and cooling pipes resumed production in the second half of June after a month-long cut. Luvata expects that its growth will be a function of GDP and gains in its market share.

Luvata Oy, Espoo, Finland, formerly Outokumpu Copper Products Oy, has stated that its $40 million copper tube mill in Guadalupe, Mexico will begin production on schedule this September. 50% of the total plant capacity will be reached with one line during September with the second line coming on line by the end of quarter four. Once full production is reached, the plant is expected to add 50,000 tons a year to Luvata's copper tube capacity in N.America. Luvata is moving ahead with its plans for this facility despite a slowdown in the North American HVAC market. The company remains cautiously optimistic about the future, stating, "based on feedback from clients, the U.S. housing market will begin to turn around by the second half of 2009 or in 2010." Strong demand in China, where Luvata has also built plants, as well as from other developing countries has helped maintain Luvata's positive outlook for the viability of the plant. The plant will face stiff competition. Henan Golden Dragon is also building a US$80M copper commercial tube mill in Coahuila, Mexico, and Mexico's IUSA has also announced plans to increase commercial tube production. In the USA, Kobe Wieland Copper Products LLC is also undertaking a US$71M upgrade of its North Carolina copper commercial tube mill.

Finish copper fabricator Luvata intends to improve its supply chain with the prospect of economic recovery. The company anticipates that the market will recover by the end of Q1 2010 and recognises that it needs to prepare so as to regain market share. Senior Vice President of procurement Bob Kickham said that once the market starts to recover, copper prices may increase again. Given the ongoing fears of substitution toward aluminium, a more streamlined and efficient supply chain will provide considerable support to copper.

Aurubis AG and Luvata Group have agreed a closing date for the sale of Luvata's rolled copper and brass products division (RPD). Aurubis originally expected the deal to close in August, however, delays in seeking regulatory approval has caused the date to slip to 1st September. Aurubis has received clearance from the US and Turkish regulatory authorities but is awaiting a response from the European Union's antitrust body. The early May agreement stated that Aurubis will pay the Net Working Capital of Luvata RPD at the time of closing, anticipated to be between EUR200 - 250M. The final price is subject to copper price movements and stock levels at Luvata RPD.

Luvata officially opened its first copper tube plant in Mexico, aiming to fabricate tubes for the HVACR industry. The company sees the current downturn in the commercial tube market as a convenient time to establish its position in the marketplace and be ready when the market picks up. The Monterrey-based plant has started with small but steady deliveries since mid-June. Currently, the plant employs 180 staff with the plan to raise workforce to 250 when the full capacity level of 2,500t per month is reached in H1 2010. Luvata aims to supply several major clients but also expand its clientele to new and smaller Mexican customers. The company intends to differentiate itself by offering just-in-time deliveries, enabling its clients to run reduced inventory levels.

London-headquartered Luvata Group, a major semis fabricator, announced its intention to establish a new production facility in India as it endeavours to capture around 10% of this emerging market by 2015. The company anticipates that growth in the domestic heat transfer market will surge by 25% per annum, driven by demand from the processed-food, supermarket retail, horticultural crops and pharmaceutical sectors. Development of an effective refrigeration supply chain is one of the targets of the Ministry of Food Processing Industries and Luvata has highlighted opportunities in reducing the waste produced by India's large fruit and vegetable market.

PKE is the new range of ECO Coils&Coolers branded air condensers launched by Luvata for commercial AC and refrigeration applications. It is the enhanced offspring of the PCE range (currently phasing out), with improved efficiency and optimized sound emission parameters. Like all ECO Coils&Coolers ventilated units, even the PKE range is available for CO2 applications. The PKE offers an improved hauling and fastening system, thanks to new features. Moreover, the side panels are removable allowing easy access to the units' internal compartments, which have been increased by 120 mm. In order to facilitate maintenance and service, the PKE range has also been equipped with special door holders with a hold open feature. For models with 4 and 5 fan motors, the number of doors has been reduced and the width has been increased, as to allow easy access to the internal components. Lastly, the base has been reinforced for particularly difficult installations. On the other hand, thanks to a compartment incorporated with the condenser to enclose the compressing and the electrical control units, called housing, the PKE range does not require long connection pipe-work, thus reducing the risk of possible leaks. The special internal surface of the compressor compartment has been designed so as to increase sound absorption, reveals the company's press release.

Luvata's North American rolled copper products business is asking some clients to buy their own cathode. The semis fabricator aims to switch a portion of its customers to tolling deals as an alternative to 30-day payment terms, which is a move to reduce its exposure to rising copper prices. Luvata said that semis production involves a 60-75 days of cash tied up.

Luvata, a major copper semis fabricator, announced that it expects a 10% rise in sales in 2011 on the back of strong Asian demand. The company expects sales of around 335,500t of copper semis this year, in comparison to 305,000t in 2010. In 2010, Luvata achieved sales growth of 19.6% y-o-y. The company believes that copper demand is recovering well, with robust growth in China and South East Asia, where the residential construction, manufacturing and electrical engineering sectors are performing strongly.

Luvata has completed the sale of its rolled products division to Aurubis. Luvata will now focus its growth strategy on emerging markets and highly engineered products.

Aurubis issued redundancy notices to 177 employees and began relocating rolling equipment to its facilities in Zutphen, Netherlands and Buffalo, USA. Aurubis took ownership of the facility from Luvata in September 2011 when it acquired Luvata's rolled products division. However, structural overcapacity due to longterm declining demand in the European copper strip for engine cooling segment led to the operation generating losses in the past few years. In an earlier announcement on Aurubis' website, the company said that production at Finspång would be gradually reduced from mid-2013 with the company expecting to finalise the closure in late 2013.