SHANGHAI, Jul. 10 (SMM) – Tongling Nonferrous Metals Group Co. planned to inject an additional 250 million yuan ($40.5 million) into its wholly-owned subsidiary Tongguan Copper Foil Co. to step up construction of the 15,000 tpy precision electronic copper foil project, according to a statement filed by the company to Shenzhen Stock Exchange.
Tongguan Copper Foil was established by Tongling Nonferrous in 2010 with registered capital of 350 million yuan. The company is designed to produce and sell copper, copper alloy, and electric wire.
Given the vast market potential for copper foil, Tongling Nonferrous decided to increase Tongguan Copper Foil’s registered capital to 600 million yuan and proposed to stretch the subsidiary’s businesses into electronic copper foil, copper semis, and electromagnetic wire.
The 150,000 tpy project will be built in two phases and is expected to create 126 million yuan in net profit per year once fully operational.