UPDATE 1-KME Copper, Alloys Product Output up in H1

MILAN, Aug 5 (Reuters) - KME Group (KME.MI), one of the world's leading makers of copper and copper alloy products, said on Thursday its first-half output rose 21 percent driven by a recovery in industrial demand.

Milan-listed KME said its output of semi-finished copper, copper alloy and special products rose to 264,000 tonnes in the first half of 2010 from 218,000 tonnes in the same period of 2009.

Copper products manufacturers were hit hard by global economic crisis last year because consumption of the red metal, widely used in the power and construction sector, is sensitive to economic shocks.

KME, which has 13 plants in Germany, Italy, France, Britain and Spain and one plant in China, said industrial demand for its products which accounts for 67 percent of total sales has recovered well in the first half after heavy falls a year ago.

Demand for its rolled products from carmakers, mechanical industry and manufacturers of domestic appliances, especially in Germany, has grown, KME said in a results statement.

Demand for pipes used in refrigeration and air conditioning and for components used to generate renewable energy was also robust.

Demand from the construction sector, which accounts for 33 percent of total sales, remained weak because of the impact of high copper prices and bad weather in Europe and North America early this year.

KME said its net loss narrowed to 3.4 million euros ($4.46 million) in the first half of 2010 from a net loss of 20.1 million euros a year ago, while operating profit came in at 17.7 million euros after a 8.9 million euro operating loss in the first half of 2009.