Furukawa Electric Boosts Copper Foil Production in Japan, Taiwan

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--As of now, Furukawa Electric Company Limited (TYO:5801) (Tokyo) has at least a 15% share in the copper foil market of Asia. Approximately 90% of the world's copper foil production takes place in Asia, mostly in Taiwan and China. Furukawa Electric operates one domestic copper foil division, located in Nikko, Tochigi, just to the north of Tokyo. Outside of Japan, it operates at least one division located in Taiwan under the name Furukawa Circuit Foil Taiwan Corp (FCFT).

Over the next four years, Furukawa Electric estimates that copper foil demand will exceed $8 billion in sales, with growth poised at approximately 10% every year. Asia is expected to be at the heart of the boom due to an upswing in the demand for electronics and lithium-ion batteries. Environmentally-friendly copper foil, or copper clad laminate (CCL), is also growing in demand, with Furukawa aiming to provide more in the way of halogen-free and lead-free foils for electronics in the near future.

In Taiwan, FCFT has begun construction on a new grassroot copper foil production site in the Douliu industrial park, south of Taipei. FCFT is aiming for a starting annual capacity of 6,000 tons, but plans to boost production to 12,000 tons per year by 2014. Expansion efforts are already underway at an existing site in the industrial park, which aim to raise output by nearly 70% within a year. Furukawa Electric is also planning to establish a new company in Taiwan that will be responsible for the production of copper foil specifically for lithium-ion batteries.

In Japan, revamp efforts at the Nikko site are underway as well. Furukawa Electric expects that the revamp will boost capacity by at least 80% to 12,000 tons per year. By 2013, the company's total copper foil capacity is expected to exceed 34,000 tons annually between the Douliu, Taiwan, and the Nikko production sites. Approximately 20,000 tons will be dedicated to electronic circuits, while the remainder will be directed at lithium-ion batteries.

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