12.8 billion yuan! Jiangxi Copper plans to build projects with an annual output of 100000 tons of lithium electricity and copper foil in Shangrao, Jiangxi Province.

On July 16, Jiangxi Copper (600362) issued a notice that in order to further refine the copper processing of the deep company, especially to speed up the strategic layout of copper foil with high added value and high technology content, the company signed the Investment Promotion Project contract with Shangrao Economic Development area. through the establishment of a new registered company, it has invested in three projects with an annual output of 100000 tons of lithium copper foil, 220000 tons of copper rods and 30, 000 tons of casting materials in Shangrao Economic Development area. The total investment is expected to amount to 12.8 billion yuan.

Lithium copper foil project with an annual output of 100000 tons

According to the investment contract, Jiangxi Tongyazi Copper foil Co., Ltd. (hereinafter referred to as: copper foil Company), a subsidiary of Jiangxi Copper Industry, has registered and established a new company in Shangrao Economic Development area, with an estimated project investment of 11.4 billion yuan, of which 7.8 billion yuan is invested in fixed assets and 3.6 billion yuan in working capital. Since the signing of this contract, the industrial and commercial registration will be completed within 30 days with the support of Shangrao Economic Development Zone, and the specific completion time of the project shall prevail. The investment and construction of the copper foil project is divided into two phases: the first phase of the project will be implemented in stages with an annual output of 50,000 tons of lithium copper foil, and strive to be completed and put into production in the first stage before December 31, 2023, and all of it will be completed and put into production by December 31, 2024; the second phase of the project will have an annual output of 50, 000 tons of lithium copper foil, and strive to be completed and put into production by December 31, 2028. After reaching production in the second phase of the project, it can achieve an annual production capacity of 100000 tons of lithium copper foil.

220000 ton copper pole project

According to the investment contract, Jiangxi Copper Co., Ltd., a subsidiary of Jiangxi Copper, registered and established a new company in Shangrao Economic Development District, with an estimated investment of 800 million yuan, including 200 million yuan in fixed assets and 600 million yuan in working capital. Since the signing of the contract, the industrial and commercial registration will be completed within 30 days with the support of Shangrao Economic Development Zone, and the specific completion time of the project shall prevail. The project aims to be completed and put into production by December 31, 2022. After reaching production, the project can achieve an annual production capacity of 220000 tons of copper rod.

Project of 30,000 tons of Foundry Materials

According to the investment contract, Jiangxi Copper plans to set up a joint venture company in the Shangrao Economic Development area, with an estimated investment of 600 million yuan, including 500 million yuan in fixed assets and 100 million yuan in working capital. After the signing of this contract and the joint venture agreement, the industrial and commercial registration will be completed within 30 days with the support of Shangrao Economic Development Zone, and the specific completion time of the project shall prevail. The foundry materials project is divided into two phases: the first phase of the project will have an annual output of 15000 tons of foundry materials and strive to be completed and put into production by December 31, 2022; the second phase of the project will have an annual output of 15000 tons of foundry materials and strive to be completed and put into production by December 31, 2026. After reaching production in the second phase of the project, the annual production capacity of 30,000 tons of foundry materials can be achieved.

Jiangxi Copper said that the investment in this project is in line with the company's copper processing strategic positioning, especially in view of the growing demand for lithium copper foil and the company's subsidiary copper foil company has leading copper foil product research and development technology and a full range of copper foil product production capacity, after the completion of this investment project, it will further consolidate the company's position in the copper processing industry and further expand the company's market share in the copper processing field. Enhance the company's sustainable profitability.

According to public data, Jiangxi Copper, founded in July 1979, is a very large conglomerate of copper mining, separation, smelting and addition in China's non-ferrous metals industry. It is also China's largest production base of copper products and an important sulfur chemical raw material and gold and silver producing area. The company has the largest Dexing copper mine in China and a number of copper mines in production. According to the company's performance forecast for the first half of 2021, the company expects to achieve a net profit of 2.99 billion yuan to 3.214 billion yuan belonging to shareholders of listed companies in the first half of the year, an increase of 2.245 billion yuan to 2.469 billion yuan over the same period last year, or 301% more than the same period last year. Jiangxi Copper said that the performance growth was due to the scientific organization of production in the first half of the year, tapping potential and increasing efficiency, and the prices of major products such as copper and sulfuric acid rose sharply compared with the same period last year, driving performance growth.

A few days ago, Jiangxi Copper said on the interactive platform that the company's copper foil production line is currently divided into two parts, one is conventional copper foil with a production capacity of 15000 tons per year, and the other is copper foil for lithium batteries, which also has a production capacity of 15000 tons per year, which was completed at the end of last year.

Western Securities estimates that the global demand for lithium copper foil in 2021 is 331000 tons, the effective production capacity is 331000 tons, and the supply and demand balance is tight; in 2021, the global demand for copper foil with 6 microns or less is 147000 tons, the effective capacity is 135000 tons, and the supply gap is 12000 tons. And the gap will persist in the next two years. Benefiting from the shortage of high-end lithium copper foil, the profits of leading enterprises are expected to remain high.

On this side, Jiangxi Copper Industry is going to expand production, on the other hand, Chaohua Technology 10 billion Lithium Copper foil and other new materials projects have also announced new progress recently. On July 13th, Chaohua Technology held a contract signing ceremony for the equipment supply of the new material industry base with an annual output of 100000 tons of high-precision electronic copper foil and 10 million pieces of high-frequency copper clad laminate, which was built with an investment of 12.26 billion yuan in Yulin, Guangxi.

Chaohua Technology said that "with an annual output of 100000 tons of high-precision electronic copper foil and 10 million pieces of high-frequency copper clad laminate", the construction of the project site has been completed, such as tamping, geological prospecting, piling, etc., and the main part of the construction is ready for construction, and will be officially put into operation in May 2022. After the project is completed and put into production, the total production capacity of Chaohua science and technology copper foil will reach 160000 tons / year.

According to Chaohua Technology's previous half-year performance forecast for 2021, the company expects the net profit attributed to shareholders of listed companies to reach 65 million yuan to 70 million yuan in the first half of this year, turning losses into profits compared with the same period last year.

Chaohua Technology said that thanks to the rapid development of 5G, new energy vehicles, IDC, automotive electronics, consumer electronics and other fields, downstream customers have a strong demand for copper foil and copper clad lamins. at the same time, rising copper foil processing fees and rising prices of copper clad laminates have led to an increase in gross profit margin. In addition, the company's annual output of 8000 tons of high-precision electronic copper foil project (Phase II) was successfully put into production in November 2020, the company's copper foil production capacity has been greatly increased, leading to the growth of business income.