India’s largest copper producer, Sterlite Industries has closed its Tuticorin utility following the failure of main cooling arrangement. The Vedanta Group company is expected to suffer a production loss of 23,000 tn following this closure. It is already facing low demand of copper due to international credit crisis. The company is producing copper at low rates as it is not getting any new orders from the market. It had 43% market share in copper business in 2005-06 and its 64% of sales came from export in the reporting year.

The company would be able to resume production at the plant after 20 days. Its Tuticorin unit is located at very strategic location due to its proximity to the port.  

The company had set a target of 33,515 tonne production in September but it can achieve only 26,968 tonne. The data shown on the website of the union government’s ministry of mines also shows that it is producing choppers at low rate.

Its cumulative production target for the period of April-August 2008, was 186500 tonne but it failed to achieve it. According to sources, company wants to shut the utility for some time to deal with the low demand problem but it is using the opportunity as per its planned strategy to deal with the crisis.