Doubles Annual Refined Copper Capacity to 50,000 Tons
Expands Refined Copper Product Portfolio with the Addition of Copper Anode Product
DANYANG, China, July 27 /PRNewswire-Asia/ -- Lihua International, Inc. (Nasdaq: LIWA) ("Lihua" or the "Company"), a leading Chinese developer, designer, and manufacturer of low cost, high quality alternatives to pure copper products, such as refined copper products and superfine and magnet wire, including copper clad aluminum ("CCA") wire, today announced that it has begun production of refined copper products on its second smelter, located in the Company's existing copper recycling facility in Danyang, China. The launch of this new smelter, with annual production capacity of 25,000-tons, doubles Lihua's annual refined copper production capacity to 50,000 tons.
Additionally, the Company announced that it has expanded its product portfolio with the addition of copper anode products, which are used as raw materials in a wide variety of consumer and industrial applications, including copper rod.
The new smelter will initially be used for the production of the new copper anode products, with the flexibility to produce other refined copper products, as needed, including copper rod. Lihua added this new smelter in an effort to better address rapid growth in the market for pure copper alternative products. The Company plans to begin construction on a new copper recycling facility during the fourth quarter of 2010, which is expected to launch in late 2011 and is expected to increase recycled copper production capacity to 100,000 tons per year.
"The launch of our second smelter and introduction of copper anode products are important steps for Lihua as we work to expand our presence in the market for pure copper products. Demand in this market is tremendous in China, and our greatest constraint to date has been refinery capacity. This new smelter enables us to better address the growing customer demand for our pure copper replacement products as we move toward construction of our new recycling facility in the fourth quarter of this year," said Jianhua Zhu, Chairman and CEO of Lihua.
Mr. Zhu added, "Lihua's copper anode represents a significant advancement in the refined copper market and speaks to the capabilities of our research and development team. We believe this addition to our pure copper product portfolio has a wide range of potential applications and are confident in our ability to successfully gain share in this market with new, innovative products as we continue leveraging our reputation, relationships and significant competitive advantages in an effort to become China's leader in the market for copper alternative products."
About Lihua International, Inc.
Lihua, through its two wholly-owned subsidiaries, Lihua Electron and Lihua Copper, is a leading value-added manufacturer of copper replacement products for China's rapidly growing copper wire and copper replacement product market. Lihua is one of the first vertically integrated companies in China to develop, design and manufacture lower cost, high quality alternatives to pure copper magnet wire and pure copper alternative products. Lihua's products include CCA and pure copper products including copper wire, copper rod and copper anode, which are produced from recycled scrap copper. Lihua's products are sold in China either directly to manufacturers or through distributors in the wire and cable industries and manufacturers in the consumer electronics, white goods, automotive, utility, telecommunications and specialty cable industries. Lihua's corporate and manufacturing headquarters are located in the heart of China's copper industry in Danyang, Jiangsu Province. For more information, visit: http://www.lihuaintl.com .
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Safe Harbor Statement
This press release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, statements about its business or growth strategy, general industry conditions including availability of copper or recycled scrap copper, future operating results of the Company, capital expenditures, expansion and growth opportunities, bank borrowings, financing activities and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this press release are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements.
Please note that information in this press release reflects management views as of the date of issuance.
For more information, please contact:
Lihua International, Inc.
Daphne Huang
EVP of Corporate Finance and Director of Investor Relations
Tel: +1-516-717-9939
Email: daphne.huang@lihuaintl.com
The Piacente Group, Inc.
Investor Relations
Brandi Floberg or Lee Roth
Tel: +1-212-481-2050
Email: lihua@tpg-ir.com
