April 17, 2008 -- Fushi Copperweld, Inc., a manufacturer of bimetallic wire used in a variety of telecommunication, utility, automotive and other electrical products, announced that it has added 6,000 metric tons per year of copper-clad aluminum (CCA) production capacity to its facility in Dalian, China since the end of its 2008 first quarter, ending March 31, 2008.
The expanded production marks the completion of the first stage of a three-phase relocation project, which will bring online an additional 22,000 metric tons of annualized CCA and CCS [copper-clad steel] capacity to the facility upon its scheduled completion in first quarter of 2009.
"This major expansion of our production capabilities is another step in our continuing efforts to bring our Dalian facility to its fullest potential of productivity and quality for our customers," comments Chris Wang, president and chief financial officer of Fushi Copperweld. "In addition to alleviating some overcapacity issues at our Dalian facility, the new CCA production lines, which utilize proprietary cladding technologies, will allow us to manufacture higher quality products designed to meet the ongoing needs of our growing global customer base. Increasing the quality of our products at our Dalian facility is a key step as we continue to further diversify our sales from the telecommunication wire market into additional growth areas which include the global automotive and utility markets."
The new production capacity has increased Fushi Copperweld's total CCA annual production to 33,600 metric tons at its Dalian facility. In addition to its installed capacity, Fushi Copperweld also has CCS and CCA production capacity in transit as part of its three-phase relocation project of machinery to its facility in Dalian from its Fayetteville, Tennessee plant.
The second phase, scheduled for completion by year-end 2008, calls for the refurbishment and relocation of 10,000 metric tons of CCS production capabilities; the third and final phase, scheduled for completion in first quarter of 2009, plans a further addition of 6,000 metric tons of CCA capacity to the Dalian facility.
Upon successful completion of the relocation project, the Dalian facility expects to realize increased capacity of approximately 80%, or total annual production of 49,600 metric tons, when compared to production at the end of fiscal 2007.
Wang concludes, 'Global demand for our bimetallic wire applications continues to remain strong. We continue to focus on manufacturing both high quality and low-cost products at our facilities around the world, which will further enhance our new business opportunities with new and existing customers and solidify our leadership position in the bimetallic wire market.'
