Lihua International, a Chinese developer, designer, manufacturer, marketer and distributor of alternatives to pure copper superfine and magnet wire, announced new production capacity expansion following the recent completion of the company's initial public offering of common stock.
Lihua has begun production on four new high speed manufacturing lines. The new lines increase Lihua's copper wire capacity from 1,000 metric tons per month to 1,500 metric tons per month and CCA wire capacity from 500 metric tons per month to 600 metric tons per month.
To supplement and capitalize on its CCA business and proprietary cleaning technologies, at the end of the first quarter of 2009, Lihua began using refined, or recycled, copper to manufacture and sell low content oxygen copper cable and copper magnet wire to its existing customer base. Lihua's copper recycling facility operates two horizontal smelters for a current production capacity of 25,000 tons per year.
"As CCA and recycled copper magnet wire are increasingly accepted as alternatives to pure copper wire magnet wire, we are leveraging our fine wire expertise to develop new products and processes while aggressively growing our production capacity to meet surging domestic demand," said Jianhua Zhu, chairman and CEO of Lihua.
"Our highly scalable production facilities and competitive supply chain advantages allow us to steadily add capacity while maintaining healthy margins. We believe that our emphasis on technological innovation and production efficiency has contributed significantly to our leading industry position in China and will enable us to capture a growing share of an enormous market opportunity."