Overheated Capacity Expansion, Cautious Towards Investment

SHAGNHAI, Jul. 26 (SMM) –As interest of expanding domestic copper plate, sheet and strip capacities is increasing, the problem of excess capacities is worsening.

Zhejiang Changxing Copper Industry Co., Ltd. (hereinafter referred as Changxing Copper Company) is an example of overheated expansion of domestic copper plate, sheet and strip capacities. As a large copper product processing company invested by the Garden Group, Changxing Copper Company's copper plate, sheet and strip project with a capacity of 25 kt/yr was put into production in 2010, with current operating rates around 70%. At present, Changxing Copper Company plans to invest another high precision and width copper plate, sheet and strip project with a capacity of 100 kt/yr, and the production time is 2010. After production, Changxing Copper Company's total capacities will reach 125 kt.  
      
Based on SMM's statistics, copper plate, sheet and strip expansion projects which have been or will be put into production this year exceed 200 kt, and mostly produce products with high additional value. Following this developing speed, overcapacities of high-precision copper plate, sheet and strip will become more and more severe.

Based on SMM sources, the Garden Group is a state-level enterprise group, and has 29 wholly-owned subsidiaries and holding companies. The Garden Group is also the national civilized rural enterprise and national high-tech enterprise, and has been awarded many titles such as Top 500 Chinese Private Enterprises, Top 500 Enterprises of Chinese Manufacturing Industries and others.