WCA March 2011

12 / 100

Industry news
Wire & Cable ASIA – March/April 2011 10
Lihua – makers of refined copper
products and superfine and magnet
wire and copper clad aluminium wire –
has broken ground on its second
copper recycling facility following the
acquisition of Land Use Rights from
the Jiangsu provincial government.
The new recycling and smelting facility,
which is expected to open during the
second half of 2011, is being built on
around 30 acres of land located
adjacent to Lihua’s existing copper
recycling facility in Danyang, China.
Based on the company’s construction
plan, the facility will initially house two
smelters, and will double Lihua’s
annual refined copper production
capacity to 100,000 tons.
Total costs associated with the new
facility, including the acquisition of
50-year Land Use Rights, construction
and equipment are expected to total
$35-$40m.
The construction and all associated
costs will be fully funded from Lihua’s
cash on hand, which totalled $87m as
of 30th June, 2010.
“We are pleased to secure these land
use rights and to break ground on our
second copper recycling facility, which
will provide us with a much needed
increase in refinery capacity as we
work to keep up with the tremendous
demand that exists for our products in
the Chinese market,” said Jianhua Zhu,
chairman and CEO of Lihua.
“We have received 2011 copper anode
supply contracts and customer
demand indications totalling 110,000
metric tons, which exceeds our
estimated refinery capacity for the full
year, reinforcing our belief in the
sizeable market opportunity that exists
for this product and supporting our
decision to launch the anode product
line during the second quarter of
2010.
“Demand for our other products
remains strong as well, and we believe
that this capacity addition will allow
Lihua to capture additional share of the
Chinese copper market.”
Mr Zhu added: “Similar to our current
facility, this new facility is designed and
constructed to meet the most stringent
environmental standards, and includes
a smoke collection system to filter the
exhaust, as well as a water collection
system which allows Lihua to recycle
the water used for the cooling of
molten copper, in addition to a variety
of other technologies.
“Our recycled copper products carry
numerous ecological benefits over
products made from newly-mined
copper.”
Lihua International – China
Fax: +86 511 86312040
Email :
Website:
Breaking ground on second facility as
recycling business booms in China