<article><p class="lead">Japanese steel and metal products maker Kobe Steel has been forced to temporarily shut one of its copper and aluminium product plants after discovering a cluster of Covid-19 infections.</p><p>Kobelco is planning to close an aluminium extrusion plant today at its Chofu works in western Japan's Yamaguchi prefecture after shutting down a copper sheet plant yesterday, also at Chofu. The aluminium extrusion plant is expected to remain closed for three days until 21 January, allowing the firm to focus on quarantine measures and Covid-19 tests on more than 900 plant staff. The copper plant will be shut until tomorrow.</p><p>The closure is unlikely to affect shipments and customer deliveries of copper and aluminium products at this stage because of ample stocks, Kobelco said. The company has confirmed 12 cases of Covid-19 at the Chofu works.</p><p>Rising new infections have led to tighter <a href="https://direct.argusmedia.com/newsandanalysis/article/2176822">Covid-19 measures</a>, with Japan expanding its second state of emergency to 11 prefectures, including the major business and industrial centres of Tokyo, Osaka, Nagoya and Fukuoka. A number of local governments outside the emergency-affected areas have also implemented equally tough quarantine measures to halt new infections.</p><p>Kobelco has predicted that sales of extruded aluminium products will drop by 12pc on the year to around 30,000t in the April 2020-March 2021 fiscal year, pressured by a Covid-19 slowdown in manufacturing demand. But sales of rolled aluminium products are expected to increase by 4pc on the year to around 310,000t in 2020-21, supported by firm demand from beverage can and semiconductor producers, as well as a strong recovery in car production.</p><p>Demand for copper products is expected to remain weak this fiscal year, with sales of copper sheets seen falling by 15pc on the year to 45,000t and those of copper tubes declining by 20pc to 65,000t, Kobelco said.</p><p>Major industrial plants, such as oil refineries, car manufacturing facilities and power plants, have been sporadically confirming new Covid-19 infections but these have rarely resulted in entire plant closures in recent months. Shipbuilder <a href="https://direct.argusmedia.com/newsandanalysis/article/2129125">Japan Marine United</a> was hit by a major shutdown at its flagship Ariake shipyard in August last year after more than 100 workers were found to be infected with Covid-19.</p><p class="bylines">By Rieko Suda</p></article>
