Lihua Increases Smelter Output to Address Increasing Copper Anode Demand in China Production Expected to Approach Designed Capacity in September
DANYANG, China , Sept. 11, 2012 /PRNewswire/ -- 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, including refined copper products and superfine and magnet wire, as well as copper clad aluminum ("CCA") wire, today announced that, as of August 31, 2012, production on its second and third copper anode smelters had reached over 2,800 metric tons per month. This is an increase of approximately 60% over approximately 1,800 metric tons in July and more than 180% over 1,000 metric tons in June. Based on this ramp, the Company expects production to ramp up to be near designed capacity of 50,000 metric tons on an annualized basis by the end of September.
"We are proud of the progress we have made since launching the smelters in June, as we have achieved a steady ramp in output despite the intense summer heat in Jiangsu Province that typically forces production slowdowns in July and August. Industry demand for our copper anode products has continued to grow, and we are working to reach maximum capacity on these smelters as quickly as possible," said Mr. Jianhua Zhu, Lihua's Chairman and Chief Executive Officer. "Based on customer indications, demand for our copper anode product will remain strong through the remainder of the year, and as such, we are confident on our production and sales outlooks for the new smelters. In addition, we are on track to launch our new CCA cable and wire products next year, opening a new and sizeable market for us in an area that presents great opportunity for growth and success."
The Company is continuing to develop its 30-acre campus in Danyang, China. To date, Lihua has completed construction on eight factory units, with work underway on an office building, employee dormitories and a research and development center. Based on current construction plans, the Company expects to complete the construction of the remainder of the site in 2013.
The latest new plant site and construction progress pictures are accessible via the investor relations section of the Company's website at http://lihuaintl.com/About_Us/Our_Facility.html.
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 refined copper products. Current product offerings include CCA and pure copper wire, copper rod and copper anode. Except for CCA wire, all other products 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 a wide variety of industries including 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.
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SOURCE Lihua International, Inc.