A.L.M.T. Corp. to build new factory in Toyama, increasing tungsten powder production capacity by 50%

A.L.M.T. Corp., a member of the Sumitomo Electric Industries group, has announced plans to construct a new factory in Toyama City to ensure a more stable supply of tungsten powder and tungsten carbide powder — essential materials for cemented carbide tools and other products.

The company has secured a site of approximately 40,000 square meters about one kilometer from its existing Toyama Works. With a planned investment of approximately JPY 16 billion (around USD 100 million), operations are scheduled to begin in the first half of FY2028. The new factory will increase the company’s tungsten powder manufacturing capacity by approximately 50%.

Editor’s insight

China’s export restrictions have contributed to rising prices for tungsten and other rare metals. Tungsten is widely used in cutting tools because of its hardness and heat resistance. The increase in material costs has also added cost pressures for end users as cutting tool manufacturers move to pass on higher procurement costs.

Cutting tool manufacturers are responding in various ways to strengthen supply stability. Some operate their own mines, while others — such as A.L.M.T. Corp. — are expanding production capacity through new facilities and other investments.